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Age Concern: Rate cut may hinder elderly

Age Concern: Rate cut may hinder elderly
8th January 2009

Elderly people may be hindered by the latest rate cuts as their savings depend on interest from modest savings, according to a leading charity for the elderly.

The government needs to urgently prove its commitment to the older demographic, according to Age Concern, which responded to today's announcement that the base rate would be cut by 0.5 percentage points to 1.5 per cent.

Age Concern highlighted the need for older savers to make the most of their money and not over-pay taxes, as well as shopping around to get the best deal and preserve their quality of life.

The charity continued: "But banks must also show that they value older savers by making their products and services more accessible to those without internet access or limited mobility who may find it harder to find the best savings deal."

Last month's rate reduction garnered much the same response from Age Concern, which said it was good for mortgage and loan holders but not savers.

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