BGN Entrepreneur

As CPI inflation remained at 3.1% last month, there was no let-up for the savers.
It is indicated that basic-rate taxpayers will need a savings account that pays at least 3.88% just to break even. Higher-rate taxpayers need 5.17%, which was indicated as nigh-on impossible by the experts.
Savings will eroded in real terms as spending power is cut by inflation. People relying on savings to boost inome, such as pensioners, are hit the worst. With the average savings rate at only 0.77%, basic-rate taxpayers are quite likely to see their savings dwindle.
The only trigger for any improvement in the savings rates may be a surprising increase in the Bank of Englan’s base rate, but it is not likely to happen in recent days. It is hard fro the savers in the field to try to beat inflation.

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