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| Version 1 | Version 2 |
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| Saving rates drop to record low | Saving rates drop to record low |
| (about 1 hour later) | |
| The average interest rate for savers who want instant access to their money is now barely above zero, figures show. | The average interest rate for savers who want instant access to their money is now barely above zero, figures show. |
| The Bank of England said that the average rate for UK instant access accounts - including current accounts - was 0.17% at the end of February. | |
| This figure does not take into account any reductions that might have come following the half a percentage point cut in the Bank rate in March. | This figure does not take into account any reductions that might have come following the half a percentage point cut in the Bank rate in March. |
| Lower interest rates have benefitted many people with variable mortgages. | Lower interest rates have benefitted many people with variable mortgages. |
| The experience of people with tracker mortgages, whose repayments have dropped markedly, has also been in sharp contrast to savers - particularly pensioners who live off interest from life savings. | The experience of people with tracker mortgages, whose repayments have dropped markedly, has also been in sharp contrast to savers - particularly pensioners who live off interest from life savings. |
| Low rates | Low rates |
| Customers with branch-based notice accounts are also seeing little return for their savings. The average rate at the end of February was 0.18%, half the rate of a month earlier. | Customers with branch-based notice accounts are also seeing little return for their savings. The average rate at the end of February was 0.18%, half the rate of a month earlier. |
| Savers are being punished for the mistakes of others Kevin Mountford, Moneysupermarket.com Have rates reached rock bottom?BBC guide to savings help | Savers are being punished for the mistakes of others Kevin Mountford, Moneysupermarket.com Have rates reached rock bottom?BBC guide to savings help |
| The average rate on instant access accounts - including current accounts - was down from 2.69% at the same time last year, and 0.28% at the end of January. | |
| "Savers are being punished for the mistakes of others. And that so many are looking to find better rates at a time when you would imagine security and service would be paramount, shows just how badly savers are being squeezed," said Kevin Mountford, head of banking at Moneysupermarket.com. | "Savers are being punished for the mistakes of others. And that so many are looking to find better rates at a time when you would imagine security and service would be paramount, shows just how badly savers are being squeezed," said Kevin Mountford, head of banking at Moneysupermarket.com. |
| The average interest rate for cash ISAs at the end of February was 0.96%, down from 1.38% at the end of January and 5.06% from a year earlier. | The average interest rate for cash ISAs at the end of February was 0.96%, down from 1.38% at the end of January and 5.06% from a year earlier. |
| However, the average interest on fixed rate bonds rose slightly from 2.49% at the end of January to 2.56% at the end of February, although this was down from 5.21% a year ago. | However, the average interest on fixed rate bonds rose slightly from 2.49% at the end of January to 2.56% at the end of February, although this was down from 5.21% a year ago. |
| Borrowers' bounty | Borrowers' bounty |
| The Bank's figures show that falling interest rates have led to lower repayments for many mortgage customers. | The Bank's figures show that falling interest rates have led to lower repayments for many mortgage customers. |
| Watching the pennies has become a bigger issue in the downturn | Watching the pennies has become a bigger issue in the downturn |
| Those on a standard variable rate (SVR) deal - the only deal with interest levels purely at the discretion of lenders - were paying an average of 4.41% interest at the end of February, compared with 7.5% a year earlier. | Those on a standard variable rate (SVR) deal - the only deal with interest levels purely at the discretion of lenders - were paying an average of 4.41% interest at the end of February, compared with 7.5% a year earlier. |
| The figures show that neither borrowers nor savers have witnessed the recent cuts in the Bank rate passed on in full. | The figures show that neither borrowers nor savers have witnessed the recent cuts in the Bank rate passed on in full. |
| The Bank's Monetary Policy Committee has cut the Bank rate for six months in succession - down from 5% in October 2008 to 0.5% now. | The Bank's Monetary Policy Committee has cut the Bank rate for six months in succession - down from 5% in October 2008 to 0.5% now. |
| Experts, including the governor of the Bank, have said that rates cannot really fall any further, although some have suggested that longer-term fixed-rate mortgage deals could become cheaper over time. | Experts, including the governor of the Bank, have said that rates cannot really fall any further, although some have suggested that longer-term fixed-rate mortgage deals could become cheaper over time. |
| It is difficult to tell exactly how many people in the UK are savers and how many people are borrowers. | It is difficult to tell exactly how many people in the UK are savers and how many people are borrowers. |
| It is safe to say that there are more savers, but the key point is that, overall, UK householders are net borrowers. | It is safe to say that there are more savers, but the key point is that, overall, UK householders are net borrowers. |
| Total household savings are £987bn with banks and building societies, plus £90bn in National Savings. Borrowings include £1,225bn of mortgage debt and £233bn of other consumer debts. | Total household savings are £987bn with banks and building societies, plus £90bn in National Savings. Borrowings include £1,225bn of mortgage debt and £233bn of other consumer debts. |
| The difference - known as the funding gap - has been filled by banks borrowing in wholesale markets, with much of the money coming from abroad. | The difference - known as the funding gap - has been filled by banks borrowing in wholesale markets, with much of the money coming from abroad. |