Inflation remains at 2.8% - Savings - News - Moneyfacts

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Inflation remains at 2.8%

Inflation remains at 2.8%

Category: Savings

Updated: 16/04/2013
First Published: 16/04/2013

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 It is now over 6 months old so the content may be out of date.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 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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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 Any products featured may be withdrawn by their provider or changed at any time.

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