Savers lose £150 billion from low interest rates

According to Hargreaves Lansdown, this is more than 7 times the amount held in these accounts prior to the financial crisis.

Danny Cox, Chartered Financial Planner, Hargreaves Lansdown, said:

“Cash savers are now facing their eighth year of miserable interest rates with only the smallest glimmer of light at the end of the tunnel. Even that may turn out to be a mirage if the economy takes a step backwards and spooks the Bank of England into keeping rates at record lows.

"The market is now expecting a hike in the middle of next year, but this wouldn’t be the first time savers have seen their hopes of higher interest rates dashed. With inflation running at close to zero and concerns a slowing China may impact the health of the global economy, rate rises in 2016 are far from a certainty.

"Even when a rate rise does finally materialise, they will be small and gradual, offering little comfort to cash savers after so many years of financial pain.

"Of course there have been positive effects from low interest rates too. The economy is growing at a decent pace, jobs are being created, and mortgage interest payments are low and affordable for borrowers. However many cash savers will no doubt be thinking it is time to tilt the tables in their favour.”