159 savings accounts now beat inflation - Savings - News - Moneyfacts

News

159 savings accounts now beat inflation

159 savings accounts now beat inflation

Category: Savings

Updated: 15/04/2014
First Published: 15/04/2014

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The latest official inflation figures, released this morning, show that the Consumer Prices Index (CPI) fell to 1.6% in March – the lowest level recorded since October 2009. This not only makes it the third consecutive month that UK inflation has fallen below the Bank of England's 2% target, but also means wage increases (averaging 1.7% according to EY Item Club economists) have outstripped the cost of living for the first time in six years.

And, in even better news it means savers can benefit too, as there are now 159 accounts that will beat inflation to give a measurable return for your money.

In order to counter the effects of tax and inflation, a basic rate taxpayer will need to find an account that pays at least 2.00% per annum – and there are 159 of them available across the ISA and non-ISA market, made up of 71 bonds and 88 cash ISAs.

This is a welcome increase of 43 on last month when there were 116 accounts that could counter the effects, and a significant improvement on a year ago when just seven accounts – all of them cash ISAs – could do the same, when inflation held for the second month at 2.8%.

The continued drop in inflation paints a much more positive picture for the nation's savers, although unfortunately rates are still at record low levels – and are still falling. As Sylvia Waycot, editor of Moneyfacts.co.uk points out, the average ISA pays just 1.59%, a drop of 0.06% on last month and considerably less than a year ago when it was 1.82%, with "the negative effects of the recently-withdrawn Funding for Lending Scheme still very much with us and showing no signs of abating."

However, it still pays to make the most of ISAs and of your savings as a whole, and if you're willing to put your money in fixed rate bonds or ISAs you could well achieve the 2.00% needed to generate a measurable return.

What next?

Find an inflation-beating savings account

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

6 of the best monthly interest savings accounts

Monthly interest savings accounts pay interest on your savings each month – as opposed to yearly – and therefore allow you to take a regular income from your hard-earned cash.

Savings being used as a festive financial buffer

Good news from RCI Bank UK – its latest research shows that many of us are saving more than we were a year ago, but the question is, will you be dipping into that buffer to cover the cost of Christmas?

6 of the best easy access savings accounts

Easy-access savings accounts are as simple as they sound – they allow you to access your money whenever you need it, without having to give advance notice, and they also allow you to pay into them at any time. Here are six of the best.
 
Close