Tuesday, 24 February 2009

Record bank withdrawals in January

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A massive £2.3 billion was withdrawn as savers gave up on the shambles that has become the government's bank bailout and interest rate policy.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.

1 comment:

Oldrightie said...

Yet one more sign of their failed activity. These banks should have been dumped.