|
|
19 Jan 2009
Chief executive of Barclays Bank John Varley has called on the government to introduce measures to entice customers to keep their money in bank deposit accounts.
Thanks to falling interest rates, banks are struggling to offer customers decent returns on their savings, Varley told Channel Four News.
“The ability of banks to create the sort of savings returns that customers had two or three years ago is quite constrained,” he said.
Interest rates, already at historic lows after the Bank of England last week slashed the cash rate to 1.5 per cent, are poised to fall even further.
This means that depositors could face 0% or even negative interest rates on their savings. And, under current tax rules, tax deductions do not apply if negative interest is charged.
You may also like
Search thousands of financial jobs:
Search thousands of financial jobs:
Careers
Search for jobs
Click to search our database of all the latest accountancy roles
Create a profile
Click to set up your profile and let the best recruiters find you
Jobs by email
Sign up to receive regular updates with the latest roles suitable for you
Briefings
By looking at the reasons supplier statements became unfashionable, and the reasons why it is different today, this paper delves into the many benefits that can be obtained by automating the process.
Having a real and true view of your organisation’s current financial position, and having the right systems and processes in place, will ensure that you can make strong choices and are ready to capitalise on opportunities
AccountancyAgeInsight is a frequently updated resource centre for finance professionals, offering a free and easy-to-use digital library of briefings, white papers and other information resources. 
Visitor comments Add your comment