Savers returns 'typically below inflation'

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Savers returns 'typically below inflation'

Fri 21st May 2010

The returns savers are getting on their money are mostly below the level of inflation, which means their spending power is reduced, an industry commentator has asserted.

Founder member of Save Our Savers Jason Riddle suggested that people are becoming disillusioned as a result of this situation, which is being exacerbated by them having to pay tax on the money they put aside.

"It's crucial that the government acts now to help all those savers who have been left powerless as inflation eats away at the real value of their savings," stated Mr Riddle.

He highlighted the recent news that inflation reached 3.7 per cent in April as a sign things are getting worse for savers, with such economic developments having a significant impact on people's finances.

The Office for National Statistics revealed the retail prices index rose to 5.3 per cent during the month, with annual inflation of this figure at its highest level since 1991.

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