Savings rates plunge to lowest level on record

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Savings rates plunge to lowest level on record during coronavirus crisis with the average account paying just 0.27%

By Daily Mail City & Finance Reporter

Published: | Updated:

Savings rates have plunged to the lowest level on record during the Covid-19 crisis with the average account paying just 0.27 per cent. 

Analysis by financial information company Moneyfacts has found that the average rate on an easy access savings account has almost halved from 0.59 per cent in January to 0.27 per cent this month. 

Under the weather: The average rate on an easy access savings account has almost halved from 0.59 per cent in January to 0.27 per cent this month

This equates to an annual return of just £2.70 on £1,000. It the lowest rate since comparable records began in 2007, with the average rate falling to a low of 0.67 per cent at the height of the financial crisis in May 2009. 

Rachel Springall of Moneyfacts said the pandemic and interest rate cuts ‘have had a catastrophic impact on the savings market’.

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