British savers take away their money from accounts

uSwitch.com conducted a survey that revealed Britons are withdrawing their money from individual savings accounts (ISAs) as interest rates fall. The study reports that 4.3 million ISA holders in the UK have plans to withdraw their funds from cash-ISAs with over 50% of them explaining their decision by the decrease in interest rates.

The data available at the price comparison website shows that the average cash ISA balance is £2,200. Thus the overall amount that could be withdrawn by these customers may account for £9.5 billion.

Some finance experts claim that the rates cut was a result of the Bank of England’s move to reduce the base rate of interest to 1% in an attempt to make mortgage lending cheaper. But the situation discouraged savers note analysts.