Inflation falls to 2.4% - Savings - News - Moneyfacts

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Inflation falls to 2.4%

Inflation falls to 2.4%

Category: Savings

Updated: 17/07/2012
First Published: 17/07/2012

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 It is now over 6 months old so the content may be out of date.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 rate of inflation fell to 2.4% last month, its lowest level since November 2009, giving the nation's savers a well needed boost.

A basic rate taxpayer needs to find a savings account paying a rate of 3.00% to beat inflation, whilst a higher rate taxpayer needs to achieve a rate of 4.00%.

There are currently 278 out of an overall 1,122 savings accounts paying over 3.00%. For the first time in over a year, variable notice and easy access accounts now pay inflation beating rates. This is great news to savers who have seen inflation eat away at any chances of a decent return on their hard earned savings.

Sylvia Waycot, spokesperson for moneyfacts.co.uk, said: "Today's fall in CPI is welcome news, although it is not enough to relieve the general hardship and disappointment that continues to blight savers.

"Many people look to their savings to supplement their income when they retire. Monthly paying interest accounts usually offer a lower return than their annual interest equivalents, which puts those relying on these accounts at an immediate disadvantage and that is before you knock off inflation and the taxman's cut.

"Those prudently saving for 'a rainy day' will find they are still taking one step forward and one step back as their good intentions are dwindled by inflation.

Today's news means that there are now only 278 (out of 1,122) standard savings accounts that negate the effects of tax and inflation. The silver lining is that last month there was a choice of only 210 accounts."

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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 Any products featured may be withdrawn by their provider or changed at any time.

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