Due in part to the financial crisis, it’s now over 10 years since the UK has seen an increase in the Bank of England’s base interest rate.
The base interest rate, which was 5.5% in July 2007, dropped as the full effects of the crisis were felt, and the rate was just 0.5% less than two years later.
The low rate has had the knock-on effect of savings rates being low for some time, whilst inflation has risen. Effects have been made even worse for savers since the Brexit vote of 2016, which caused the pound to fall against the dollar.
This has caused increased inflation, which is now at the much higher figure of 2.6% - causing many savers to lose out.
This infographic puts it into context the current issues facing savers due to the low rates, and just what exactly they are missing out on when they do no beat inflation.