Cut in savings rates 'may lead people to secured loans'
20/08/2008People considering taking out a secured loan may be swayed by the banks and building societies cutting interest rates on access savings account.
This comes despite the fact that they are desperate to attract more cash from Britons in the wake of the credit crunch, according to MoneyExpert.com.
Cuts have occurred due to the banks' efforts to attract long-term savings from people in order to improve liquidity.
Director of MoneyExpert.com Sean Gardner remarked that this is a reflection of the banks' attempt to get people to save long-term.
He said: "They want to know they have money to play with and can't afford to offer as good deals to attract short-term savings that can be withdrawn without penalty at a moment's notice."
This comes as the Daily Mail has reported that another day of turmoil on the stock market saw £20 billion cut in value from some of the UK's biggest companies.
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