0.5% base rate "bad news" for some lower earners

The UK's base interest rate, which continues to stand at 0.5 per cent, may be having a damaging impact on the finances of some of the country's lower earners, it has been suggested.

It might have implications for those who supplement their earnings with the interest that they receive from their savings accounts, Defaqto's David Black has revealed.

Mr Black, a banking specialist at the organisation, described the low base rate as being "seriously bad news for Britain's hard pressed savers and particularly for those on modest incomes who rely on interest from savings to boost their means".

While the low interest rate could force some people to get credit, Mr Black has suggested that switching to another savings account might prove to be a good option for consumers.

Meanwhile, Motley Fool's David Kuo has recently highlighted the potential long term benefits of saving money.

Posted by Tom Burroughs.