After further growth in the inflation rate, savers now need to find a savings account that offers a rate of at least 4.63 per cent to avoid losing money when they save.
Higher rate tax-payers now need an even more unobtainable rate of 6.17 per cent to match the increase in the cost of daily life in the UK.
Figures for December show that the Consumer Prices Index (CPI) suggests that the rate of inflation is now at around 3.7 per cent. However, these figures do not mean that savers should rush out and sign up to a fixed-rate plan that means their money is tied up for years. Economists expect the interest rate to start increasing this year and, as a result, savers could finally be in for some good news.
Other savers may be keen to increase their returns by opting to try out their luck on the stock markets or commodity funds. However, this is a high risk game and savers risk getting their fingers burned unless they get very good advice.
Sitting tight and keeping a close eye on the top deals tables is probably the best plan for now.
