Recently released figures revealed that despite improvements in the industry, there are still no savings accounts capable of protecting hard-earned money from the impact of inflation.
With consumer price index (CPI) inflation accelerating to 2.5% in June, from 2.1% the previous month, there is not a single savings account in standard species that can beat her, according to Moneyfacts.co.uk.
This means that the value of many savers’ pots is falling in real terms.
For anyone with savings and especially those who have been successful in saving money through cutting expenses while on lockdown, this is a big blow and experts have recommended looking for an account with high rates. higher interest.
“However, you can earn 50 times the interest in the most competitive easy-to-access accounts and you must be wondering what the alternative is.
“If you want to sit back and wait for your bank to offer you more, you might be in for quite a bit of a wait as the market expects the Bank of England to keep rates at 0.10% until 2023. “
A year ago, when inflation was lower, more than 300 transactions, including easy access accounts, notice accounts, Isas and bonds, could beat inflation, Moneyfacts said.
Rachel Springall, Financial Expert at Moneyfacts.co.uk, said: “Despite improvements to the best savings rate deals in recent weeks, inflation is wreaking havoc on savers’ money.
“There is currently no standard savings account that can exceed its erosive power. “
She added: “Consumers with a fixed or Isa bond that is about to expire may wish to compare offers now, particularly on one-year fixed bonds.
“Savers who prefer to lock in their money for a higher return may want to think carefully about how long they are comfortable with committing, as we may see further rate improvements in the weeks to come. “
Ms Springall added: “Those savers who traditionally lock in money for a year and grab the highest rate a year ago will find they can lock in to a higher rate today.
“The sad truth, despite such positive rate changes, is that there are no standard savings accounts that can beat the current level of inflation.”
The Moneyfacts definition of standard savings accounts excludes certain accounts, such as regular savings accounts, children’s accounts, and checking accounts.
Get the latest news on savings and benefits straight to your inbox. Sign up for our weekly Money newsletterhere.