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Interest rates for savers have fallen to new record lows, after hundreds of cuts in recent months and more than 1,000 in the past year.

Savings rates plummeted after the Bank of England slashed its base rate in the financial crisis.

Since last autumn, as the economic outlook has worsened, they have fallen again.

Tax-free Isas, fixed rate bonds and easy access accounts are all at or near their lowest points.

The fall in rates has come across the board, with significant reductions from National Savings & Investments, Bank of Scotland, NatWest and Nationwide Building Society.

The average return from the five best easy access accounts has dropped from more than 3% in 2012 to under 1.3%.

Tax-free Isa rates are at their lowest ever. The average variable rate Isa is down to 1%, while a typical fixed-rate Isa pays 1.4%.

Article source: BBC, Business, 12th May 2016,

http://www.bbc.co.uk/news/business-36266180

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