The Bank of England increased the base rate for the first time in over a decade this week, but even before the decision was made, our very own finance expert Rachel Springall appeared on national television on Tuesday evening to explain how it would impact savers.
Whilst interviewed for ITV News, Rachel explained how savers have suffered over the years, with the spending power of their cash eroded thanks to poor returns and rising inflation.
"It's quite likely most savers are on less than 1% interest and it's constantly being eroded by inflation," said Rachel. So, despite there being an interest rate rise of 0.25%, raising the bank base rate to 0.50%, savers are still losing money in real terms. Savers would need to find an account paying 3% or more to merely counter the impact of inflation.
You can watch the segments below, and if you've been encouraged to move your savings account, make sure to head to our best buy tables
to check out the best options on the market.