Savings levels fall to 12-month low Cash balances in savings accounts have fallen to a 12-month low, as savers continue to suffer the effects of Bank of England's attempts to jump start the UK economy, writes Elaine Moore. This week's announcement that the Bank is holding interest rates at 0.5 per cent, while committing another £50bn to buying gilts and keeping their yields low, suggests returns for savers will remain depressed. IN Savings Low interest rates and high levels of inflation - which some fear must rise in the wake of further QE - have already cost savers £18bn a year, according to research by accountancy group UHY Hacker Young. New accounts offering competitive rates have been in such high demand that many now attract all the funds they need within a month - resulting in their closure. Research from Moneyfacts found that new fixed rate bonds are typically only offered for 30 days. In 2006, they were generally available for 150 days or more. Rates on longer term bonds are also starting to fall - average five-year fixed rates have come down from 4.02 per cent at the start of April to 3.88 per cent today. "Once a few providers start to cut rates, others will follow suit as no provider wants to pay more than they need to attract savers" money," explained Moneyfacts. A survey by National Savings & Investment this week found that almost a quarter of those asked no longer save any money. Average amounts saved per month have fallen from £100 this time last year, to £87 today - reducing balances to their lowest level since early 2011.