Savers miss out on £188bn worth of interest on their nest eggs

Savers have missed out on £188 billion of interest on their nest eggs in a lost decade since the financial crisis.

The stark figures reveal the impact of record-low interest rates and a vast money-printing programme by the Bank of England.

And they show the price paid by ordinary savers to prevent economic collapse following the 2008 banking crisis.

There has also been a surge in money languishing in bank accounts that pay no interest at all, from £47 billion in September 2008 to £165.9 billion today.

Coles said: ‘Without loose monetary policy we would almost certainly have been left in a much sorrier state by the financial crisis.

‘There have also been beneficiaries of low interest rates, most notably borrowers, who have seen their mortgage payments fall substantially.

‘However, it’s savers who have paid the price.’

Although the Bank of England’s actions led to a cut in mortgage costs, this fall in borrowing also fuelled a long boom in house prices which is forcing young people to take on record levels of debt to get on the ladder.

Some economists also argue that the cheap cost of commercial borrowing has allowed many ‘zombie’ companies which are loaded up with debt and unable to invest to stagger on, when it would be better for the economy to let them die and be replaced by more profitable firms.

Former pensions minister Baroness Altmann said: ‘Quantitative easing has hurt millions of households, both savers and borrowers.

‘The side effects may be feeding popular disaffection with the entire capitalist system – most particularly among the younger generations.’