Home | Savings Accounts | ISAs | Savings Bonds | News
You are here: Home » News » Savers continue to feel pinch as inflation remains high

Savers continue to feel pinch as inflation remains high

The Bank of England’s announcement that The Consumer Price Index (CPI) remained high (2.7%) will be a cold blow for savers and means searching for the best savings rates is vital to ensure they are maximising their returns, according to MoneySupermarket.com.

To beat inflation, basic-rate taxpayers will need an account that pays at least 3.39% to gain benefit in real terms from their savings, increasing to 4.51% for higher-rate taxpayers and 5.41% for 50% taxpayers.                   

Kevin Mountford, head of banking, at MoneySupermarket.com, said: “It is important savers don’t give up or get put off, and prepare to switch if they are not currently on the most competitive deal.

“There is a significant difference between the average and top paying rates, and moving to a better deal can go a long way to help savers limit the impact of inflation on their pots.

“Only a handful of savings accounts currently beat inflation. As we approach the start of tax-year-end season, for savers, using products such as cash ISAs to take advantage of the tax free benefits is a must.

“However, even if you cannot find an account that beats inflation, consumers need to make sure they are on the best deals possible.

“Savers should also consider looking at alternative products such as offsetting savings against mortgage borrowing, peer-to-peer lending, or structured savings products.”

Contact Us | Privacy Policy | Terms of Use