Over half of Brits hope to see base rate increase

When the Bank of England originally announced that the base interest rate in the UK was being dropped to an all time low of just 0.5 percent thirty months ago, there were many people who were ecstatic as a result of being able to save money on their outgoings and borrowing in what had become a very difficult financial and economic climate.

However, thirty months on the base rate is still at this record low and whilst the economic and financial climate is still difficult a rising number of people are now starting to hope that the base rate will soon start to increase again. Whilst many borrowers have indeed benefitted from the low base rate there are also many that have suffered, such as savers who have lost a fortune in interest on their savings and consumers who have seen inflation soar.

A recent survey has revealed that more than half of UK consumers are now hoping that the base interest rate in the UK will increase for one of a number of reasons. In total, 52 percent of consumers are hoping to see the base interest rate increase. Of these, 41 percent wanted the base rate to rise so that they would be able to get better returns on their savings, which have really suffered over recent year. A further 11 percent said that they would like to see the base rate rise in order to tackle soaring inflation.

One industry expert stated: “With the Bank of England Base Rate sitting at a record low for the past two and a half years it is clear that there have been winners and losers, with savers generally feeling the combined impact of low rates and high inflation. Some borrowers have benefited, particularly those mortgage borrowers with large deposits, or those who want to borrower larger amounts on personal loans.”

Tags: combined impact, low rates, uk consumers, winners and losers, rate increase, interest rate, increase, recent survey

How bleak is the future for the UK?

Many people were horrified to learn recently that whilst many major economies are going through a severe downturn and recession, the UK is expected to be the hardest hit of the major economies, which is of course bad news for UK consumers and businesses. Read more

Tags: uk consumers, Late 2000s recession in Europe, confidence levels, uk jobs, economic future, number, twenty years, British Chambers of Commerce

Taking care of your savings

With all that has happened in the banking industry over the past year it is little wonder that consumers are so nervous about where to put their hard earned money when it comes to savings accounts. This time last year saw Northern Rock go through its crisis, and many people flocked to withdraw billions of pounds worth of savings from the bank before it was eventually nationalised. Many other building societies and banks benefited from this situation, as consumers tried to find alternative places to put their savings. Read more

Tags: lloyds, safe place, haven, uk consumers, something

Top of the polls for Nationwide

In a recent poll carried out by moneysupermarket.com a building society has beaten all of the big banks, pipping them to the post with the number one spot as most trusted bank or building society amongst UK consumers. The big name banks have always claimed to be the most trustworthy and reliable, but the poll has shown that the highest percentage of people actually have more trust in a building society. The Nationwide scooped the number one spot on the poll, and its excellent service and reliability levels were highlighted. Read more

Tags: halifax, poll, uk consumers, bank, spot, building society

Credit cards recommended for online Christmas shoppers

Brits enjoying a more relaxed Christmas shopping experience online are advised to use their credit cards for enhanced protection.

According to Simon Crisp, director of Shopsafe.co.uk, consumers can improve their legal security by using a credit card for online purchases.

He added that, if doing so, they should also take the measure of registering the card with their bank with the new schemes available from Visa and Mastercard.

“There’s actually new schemes being launched by the credit card companies – one’s called Verified by Visa, the other is called Mastercard SecureCode.

“Both let you register your credit card with your bank, and put a password on your credit card, so that only you can use that card.”

He said that this will protect the user against identity fraud and theft as the retailer knows that only the consumer is in possession of the password.

According to consumer group Which?, 69 per cent of Brits will do their Christmas shopping on the internet this year to avoid the “crowds” and be able to “compare prices more easily”.

Tags: Credit Cards, shopping on the internet, fraud, cent, uk consumers, security, MasterCard