SAVERS

A RATE rise is long overdue for millions of savers who have endured years of pitiful returns on their money, with what little interest they earn often outstripped by rising living costs.

The Government’s Funding for Lending scheme, launched in 2012, made matters worse by allowing banks to get their hands on cheap money, meaning they shunned savers.

A Bank of England base rate rise will begin to soften the blow, but only if firms pass it on.

Big banks were quick to slash what they paid savers when the Bank of England cut rates.

But they are now awash with funds, meaning they will be in no hurry to raise them.

Just under 70% of those polled by Survation had savings. But this ranged from 58% of 18 to 34 yearolds to 84% of those aged 55 and over.

Two-thirds said a rate rise would help their personal finances, with 66% saying the biggest thing they would do with their windfall would be to reinvest it. Some of it would also go on luxuries such as eating out and holidays.

Tom Adams, head of research for independent advice website Savings Champion, said: “If the base rate goes up, that’s great news for savers. But don’t expect an instant change.

“Some of the big providers have been cutting rates to the bone over the past few years.”

The Mirror’s survey also revealed how quickly even those with savings could run out of money if they fell on hard times. Just under a quarter said they had enough to support themselves for three months or less. Of those, 3.5% admitted their savings would not even last a month.