US $700 billion bailout plan

Commenting on the US's $700 billion bailout plan being blocked, Kevin Mountford, head of banking at moneysupermarket.com, said: "While it is crazy to think that taxpayers should have to bail out poorly managed, irresponsible banks, it is clear that decisive action needs to be taken to avoid further economic problems around the globe.

"Until then, consumers will continue to suffer and the cost of borrowing will increase. While the high rates are good news for savers, this purely benefits people who already have savings built up.

"Most people know they need to save for their future and provide a much needed safety net, but with increased costs across the board, they don't have the means. The UK Government clearly needs to look at further initiatives and incentives to give consumers every chance to get on the savings ladder. These increased deposits would have the added benefit of helping shore up the banking sector."