Inflation damaging savings
www.moneynews.co.uk > General finance > Inflation damaging savings
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Money News |
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Inflation damaging savings
Wed 15th Oct 2008
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Defaqto has found that a basic rate taxpayer needs a gross return of 6.5 per cent on savings just to keep up with inflation.
Taxpayers on higher rates need 8.67 per cent.
David Black, principal consultant of banking for Defaqto, said that apart from cash individual savings accounts, "even basic rate taxpayers now face a struggle to earn a real rate of return on their savings".
He also predicted that rates will be cut on many variable rate accounts in the next two or three weeks.
Defaqto's findings are echoed by Moneyfacts.co.uk, which says that inflation at 5.2 per cent and tax mean that it is now "near impossible" for savers to earn interest.
Its own data also found that standard rate taxpayers need an account with a 6.5 per cent rate, while higher taxpayers need 8.63 per cent.
Related News : General finance |
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Related News : Banking |
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