The Consumer Prices Index remained at 2.8% during March, according to latest figures released by the Office for National Statistics (ONS).
Research by Moneyfacts.co.uk revealed that a basic-rate taxpayer will need to achieve a savings rate of at least 3.50% to negate the effects of tax and inflation, whilst a high-rate taxpayer will need to find an account paying 4.66% or over.
Just seven ISAs pay rates that beat CPI, whilst a £10,000 investment made five years ago would have the spending power of £8,870 today.
Sylvia Waycot, editor at Moneyfacts.co.uk, said: "Many people, particularly pensioners, rely on savings interest to fund day-to-day living expenses and today's announcement will not ease the burden of a dwindling spending power from what are meagre savings returns.
"Today, the average easy access account pays 0.77% as opposed to 0.84% last year.
"Settling for a fixed bond today will give you a much lower return of interest compared to this time last year, when you could get 3.9% over a two-year deal, compared to under 2.6% today."
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