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It’s happened. Earlier this week the Bank of England dropped their interest rate from 0.75% to 0.25% in an effort to boost the economy throughout the Covid-19 outbreak.
While this is good news for borrowers, this isn’t the best news for savers looking to get a decent amount back on their cash savings (not that they’ve had much to celebrate anyway since the 2008 financial crash).
As a result, Starling Bank have dropped their interest rate on their personal and joint accounts by 90% to 0.05% on savings up to £85,000.
The rate wasn’t amazing anyway at 0.5%, with many other better options to put your cash, but this is still disappointing nonetheless (albeit expected).
This was only ever a spending account for me, and not one I’d be looking to store any serious cash in, but this further drop serves as even more of a reason to learn about investing in order to make your money work harder for you.
I’m still a big supporter of Starling bank and what they’re doing within the fintech/ banking space; I’ll have a proper review coming soon.