New Which? research shows a widening gulf between the average interest rate on savings and the cost of borrowing on a credit card.
Consumers are being punished as credit card rates rise, while savings rates fall, according to the new Which? Money analysis.
Base rate at a historic low of 0.5%
The Bank of England base rate fell from 4.75% in October 2006 to just 0.5% in March 2009, remaining at that level throughout 2010 and 2011. While savers are struggling and the base rate is at a historic low, the average credit card APR has actually risen, from 15.74% in October 2006 to 17.20% in 2011.
Which? Credit card expert Bobby Nicholls says: ‘With average credit card rates sky high and saving rates at an all time low, it’s never been more important to make sure you’re getting the best deal. Visit our Best Rate credit card tables and savings tables for the best deals updated daily.’