Silver Lining for Savers (article by Matthew Bretherton)
Posted by markharrison on July 31, 2008
Matthew Bretherton has written a good new article at money.co.uk about who is gaining from the credit conditions.
He points out that the growing spread between base rates and actual rates cuts both ways:
…the interest banks are prepared to pay out on savings accounts are 1.3% higher than the last time the Bank of England base rate was at 5% (in December 2006)…
He also points out that the result is increased savings, which, because of the Basel II rules (forthcoming blog post), might spell some good news for borrowers.