'Many consumers' worried by savings rates

A significant number of UK consumers are concerned by falling savings rates, it has been found.

A study conducted by Which? discovered that three-quarters of respondents consider such rates to be worrying.

The research also revealed that energy prices, future tax levels and food prices are among the issues most concerning Britons, potentially including those who are investing in child savings accounts.

Recently, the Bank of England's monetary policy committee reduced the base rate of interest to one per cent, meaning investors could see a further decline in their rates.

Which? chief executive Peter Vicary-Smith said: "Our research shows that savings rates are a major area of concern for consumers and it's no wonder given the eagerness of banks to slash their already miserly rates at the drop of a hat."

He added that savers should "vote with their feet" by moving their money to other institutions which offer better rates to consumers.