January saw a record withdrawal of cash from banks according to the BBA.
A massive £2.3 billion was withdrawn as savers gave up on the shambles that has become the government's bank bailout and interest rate policy.
A popular destination was corporate bond funds yielding around 4%, although the capital is not secure. Analysts are predicting that corporate bonds are potentially going to have double digit growth for the next couple of years before returning to normal.
I wonder how much longer the government and the BOE will continue with this low interest rate policy, which is robbing savers (who did the right thing) of their interest.
Tuesday, 24 February 2009
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1 comment:
Yet one more sign of their failed activity. These banks should have been dumped.
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