Official figures reveal inflation fell for the second consecutive month during August.
Consumer Prices Index inflation now stands at 2.7%, 0.1% below July's figure of 2.8%, according to the Office for National Statistics (ONS).
This means that in order to beat inflation, a basic rate taxpayer at 20% needs to find an account paying 3.38% per annum, while a higher rate taxpayer at 40% needs to find an account paying at least 4.5%.
There are now three savings accounts on the market that will beat tax and inflation for a basic rate taxpayer, out of 804 ISA and non-ISA accounts.
At the time of last month's inflation announcement there was only one account that beat inflation.
"Inflation may have fallen but it is still high enough to ruin the spending power of any feeble interest paid on today's savings accounts, which leaves the elderly reliant on savings income and the young saving for a house deposit high and dry," said Moneyfacts.co.uk Editor Sylvia Waycot.
There are now three cash ISAs and one fixed rate bond that beat inflation.
But all three products require savers to commit funds for at least five years.
All of these products allow savers to transfer in previous cash ISA savings.
The other product that beats inflation is:
Savers must remember, however, that they will have to commit funds for the full seven-year term as earlier access or withdrawals are not permitted.
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