According to the latest figures released by the Bank of England, households in the UK are withdrawing their long term savings at their fastest pace in a period in almost four decades.

The figures showed that the people withdrew £23 billion out of long-term savings during the previous 12 months, which is about £900 for every household in the country. The households either used the money for expenses or moved it to easy-access current accounts. The higher spending has helped revive the economic growth in the country as people increased spending on consumer goods.

The latest figures released showed that the low interest rates have convinced long term savers to keep their money elsewhere. Most of the long term savings earned as little as 1 per cent interest in the UK. Experts have said that the low interest rates could put savers and pensioners in a disadvantageous positions they would earn lesser interest on their savings. They have said that more than one million pensioners are facing lower earnings due to bank's polices.

Experts have said that the central bank and the government must encourage the long term savers to continue with long termsavings.