Inflation increase 'bad for savers'

www.moneynews.co.uk > Banking > Inflation increase 'bad for savers'

Inflation increase 'bad for savers'

Wed 20th Jan 2010

The increase in inflation is bad for savers who are seeking good returns on their money.

According to moneysupermarket.com, the inflation increase announced today (January 19th) is the largest since records began.

Currently, only a small number of savings products are offering a rate of interest high enough to offset the effects of the rise in inflation.

Basic rate taxpayers need to find an account which will give them an interest rate of at least 3.63 per cent, while higher rate payers should be looking for a rate of 4.84 per cent or above to beat the increases.

Kevin Mountford, head of banking at moneysupermarket.com, said: "When looking to choose a suitable savings product it is easy to forget the impact inflation can have, so it's vital savers keep a close eye on how their account stacks up."

The price comparison website also recently offered advice to credit card users, reminding them that by shopping around they can find a better rate of interest or make big savings by going with a zero per cent deal.

Click here for more banking news

Related News : Banking
	Young people 'should be taught to save'
	Families 'should plan for their children's future
	Switching bank accounts 'not as easy as banks portray'
	Brits facing finance difficulties 'should talk to their bank'
	Brits 'should utilise Isa allowances'
	Brits advised on investment options
	Children 'should be given bank accounts at 16'
	Falling inflation 'could help Brits save'
	Money worries 'are mounting for many'
	Contactless payment 'is secure and convenient'