Money Box Live: Making Sense of Savings

Money Box

BBC

Business

4.2 • 825 Ratings

🗓️ 2 August 2023

⏱️ 29 minutes

🔗️ Recording | iTunes | RSS

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Summary

Bank bosses are being asked to explain why interest rates on savings aren't keeping up with the rising cost of borrowing.

The heads of Lloyds, HSBC, NatWest and Barclays banks will meet the Financial Conduct Authority (FCA) on Thursday.

Chancellor Jeremy Hunt has already stepped in to tell banks to put up rates for savers.

At the moment the Bank of England base rate is 5 per cent, following last months 13th consecutive rise.

UK Finance who speak for banks say "savings rates are driven by a number of factors," not just the base rate.

Laura Suter, head of Personal Finance at AJ Bell and Kirsty Stone, Chartered Financial Planner at The Private Office, are here to help make sense of your savings.

Presenter: Adam Shaw Producer: Sarah Rogers Editor: Jess Quayle

(First broadcast 3pm, Wednesday 5th July, 2023)

Transcript

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0:00.0	On a winter's night in 1974, a crime took place that would obsess the nation.
0:07.0	It was an extraordinary news story.
0:09.0	The story of an aristocrat, Lord Lucan, who's said to have killed the family Nanny,
0:14.0	mistaking her for his wife, then somehow just disappeared.
0:18.0	One of the great mysteries in English criminal history. We're still looking for Lucan.
0:22.1	It's honestly one of the most powerful stories of my lifetime.
0:26.0	I'm Alex von Tundselman.
0:27.4	This is The Lucan Obsession.
0:29.2	Listen on BBC Sounds.
0:32.7	BBC Sounds, music, radio, podcasts.
0:36.6	Welcome to the podcast of Moneybox Live. This week we're
0:39.9	talking about savings. Interest rates are one of the biggest financial stories of the moment.
0:45.4	After the Bank of England raised the base rate to 5%, mortgage deals rocketed, but the amount
0:50.9	banks are paying to savers has come under a huge amount of scrutiny for not
0:55.8	rising as fast. Well, the UK's financial watchdog has summoned bank chief executives to ask
1:01.6	why the rates they're passing on to savers is lagging behind. And to put it into context,
1:07.1	the average savings product paying under 3% roughly, and inflation still remains
1:12.2	nearly at 9%, meaning 6% of a saving pot's real value is being lost each year. So today's
1:20.7	Moneybox Live is all about making sense of savings. And let's start with some shoppers in
1:25.7	Bromsgrove. We asked if they're noticing better returns on their savings. And let's start with some shoppers in Bromsgrove. We asked if they're noticing better
1:28.9	returns on their savings. Not really. It's just, well, maybe a little bit as interest rate has
1:35.1	gone up. I believe they could do a little more. They don't think about the savers at first,
	...

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