The latest updates in consumer and personal finance are highlighted in The Mirror’s Money blog. Savers are facing a setback as Moneyfacts data shows a drop in the average savings rate to 3.35% in January, the lowest since May 2023.
In other news, Tesco has introduced a Clubcard update allowing customers to triple the value of their Clubcard vouchers at select restaurants like ASK Italian, Bella Italia, and more. Which? has ranked energy suppliers, with Scottish Power at the bottom and E at the top with a 79% score.
The announcement of new tariffs on US imports by the President has raised concerns globally. The impact could lead to challenges for UK companies exporting to the US, potentially resulting in job losses.
On the financial front, the decline in savings rates is attributed to the Bank of England’s base rate cut, benefiting borrowers. Caitlyn Eastell from Moneyfacts predicts a shift in the savings market with rates expected to decrease.
Furthermore, analysis shows a significant number of households relying mainly on state pensions for retirement income. Regen Central Ltd, a travel agency, has gone into liquidation, affecting holiday bookings. Additionally, Caldwell Construction Limited has collapsed, risking over 400 jobs.
The housing market has started the year strongly, with a record increase in average home prices according to Rightmove. The 2.8% spike in January marks the largest monthly rise in 25 years.