THE TELEGRAPH: Millions of savers are braced for zero per cent accounts within days as the Bank of England is poised to cut interest rates to the lowest level in its 315-year history.
Experts have warned the return on savings could plumb new depths with the Bank expected to take unprecedented steps to regain control over the economy.
They widely believe the Bank will reduce borrowing costs to below their 2 per cent level - and possibly all the way down to 1 per cent - in its first meeting of the year next week.
More than 7 million people have saving accounts which already pay interest of 1 per cent or less. If a cut is passed on in full by banks, these accounts will dive towards negative territory for the first time on record.
Many elderly people who rely on the income from savings have found themselves struggling in recent months as returns fall. Savers Facing Accounts with No Interest >>> By Edmund Conway and Myra Butterworth | Saturday, January 2, 2009
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