A mean stunt to pull

IF YOU are sick of low rates on savings, the message could not be clearer: move your money out of deals where interest has been cut to zero.

As we reveal today, the banks and building societies are stockpiling these low-rate savings and have built up a £130 billion war chest.

Because they have all this money they don’t need to pay you more — that’s why rates, particularly on fixed bonds, are falling at a time when many thought they would start to rise.

They don’t need your money, so you have a responsibility to make them want it. Take away this lowcost money and move your savings to the best deal you can find.

I realise this may be little more than 1 pc. And it may seem a lot of effort to get a pathetic payback. But we need to take this cheap funding out of the banks’ hands.

Think carefully about what your savings are for. You’ll need to have some rainy-day funds. But there are other options. Overpay your mortgage. Get rid of debts. Put it in your pension. Invest — if you can stomach the risk.

Getting value for your savings is going to be particularly crucial this Isa season — the industry name for those few weeks in late February and during March where banks and building societies offer their best deals before the end of the tax year on April 5.

We have £226 billion in cash Isas and again banks know how valuable this wodge of money is.

I have to admit that the signs are not good this year. We’ve had just a handful of new accounts in the past few weeks. I’ve got my fingers crossed that the banks are saving the best for later in the year.

But I still wouldn’t expect any Isa miracles, particularly if you want to transfer an account.

Earlier this month, we revealed how the big names were limiting the top deals to new savers. That means the thousands you have in older accounts may have to sit languishing on low rates.

It’s a miserable, mean stunt to pull. So, it’s up to you to fight back. They are your savings; the banks aren’t going to look after them for you, so you need to.

Retirement fear

WE KNEW many readers found the process of retiring confusing — we receive a steady stream of emails and letters about this.

But what I had underestimated is just how scared families are when they take their pension.

It’s clear from the flood of messages you sent us in support of our Stop The Great Pensions Rip-Off campaign that many of you are terrified of making the wrong decision.

Retiring means a dramatic life upheaval and getting your finances right is crucial.

So, I can only imagine the horror when you open that first letter from your insurer, which includes a quote for how much income they are going to pay you, and you don’t understand a word of it. Even the most savvy,