Save me money: Interest rates will not put people off

Current interest rates are not enough to discourage people from saving money, according to one industry expert.

Jason Riddle, co-founder of Save our Savers, said that people look to put funds away for a reason, such as preparing for a major purchase.

Therefore, the current interest rates will have little bearing on whether account holders choose to save up money.

"What will happen is that people who are dependent on their savings income may be forced to spend their capital or they may feel it is not worth preserving since it is being devalued by inflation, and instead they may spend it," he added.

Mr Riddle went on to say that it is not until savers' money is valuable to the banks that they will start paying out a decent return.

According to Which?, savers are missing out on £12 billion a year because banks are not being open about poor returns.