Savings Accounts to Beat the New Rate of Inflation

With the Consumer Price Index at a two-year high, savers will have to be savvy to counter the effects of rising inflation

Kara Gammell 20 January, 2017 | 2:10PM
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With the Consumer Price Index at a two-year high, savers will have to be savvy to counter the effects of rising inflation. CPI rose to 1.6% in December, an increase from 1.2% the month before. But figures from Moneyfacts.co.uk show interest rates continue to be cut by banks and building societies.

Of the 669 savings accounts currently on the market, just 44 can meet or beat inflation. What is more, none of these inflation-proof accounts are easy-access, with the majority being fixed-rate bonds with a minimum three-year period.

According to the comparison website, the number of rates being cut across the savings markets has outweighed the number of rises for the last 15 months. In December, four rates were cut for every one that went up; a total of 84 decreased last month, while just 21 rose.

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About Author

Kara Gammell

Kara Gammell  is a freelance journalist and author, specialising in personal finance and consumer issues, writing for Morningstar.co.uk

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