A UNIVERSITY professor conducting a research project into savings schemes is hoping his findings will influence Government policy.

Professor Robert Hudson is carrying out what he believes is the most comprehensive study of interest rates in recent times in a bid to help consumers work out how to find the best deal - and demonstrate the effect of all-time low interest rates to the Government.

The paper, which is due to be published in the summer, is a one-year project which will see the Newcastle University Business School academic and his colleagues look at hundreds of thousands of savings products offered by banks and building societies since 1989.

It is hoped the research will track trends in financial services, helping consumers to work out where they will find the best deal.

It will also look at the effect on saving of the Bank of Englands baseline rate of 0.5 per cent, which has been at this low for an unprecedented three years.

Prof Hudson said there needed to be a study of the effect of this unusual situation on the UKs economy, and how it had affected both pensioners, who relied on savings, and younger people, who tended to have more debt.

We are looking at the effect over the long term, he said. I think it is particularly interesting at the moment, because I dont think you have ever got much below a 2 per cent interest rate in history.

Interest rates were slashed to 0.5 per cent in 2009 as an emergency measure, and they have stayed there. That is unprecedented.

The study is due to be published both to the academic community and the wider population in August.