Consumers in the UK are still struggling to know what to do with their savings due to high inflation, new figures have indicated.
Data from the Office of National Statistics revealed that Consumer Prices Index inflation stood at 3.1 per cent in August – substantially above the government’s two per cent target.
Consequently, a basic rate taxpayer would need a
savings account which offered 3.88 per cent interest in order to prevent their finances being adversely affected.
There are currently 91
savings accounts on the market which offer such a rate, including those from the State Bank of India and Nationwide.
Darren Cook, spokesperson for Moneyfacts.co.uk, said, "Inflation is a stealthy enemy that quietly erodes the spending power of a saver's hard earned nest egg.
"The only trigger for any improvement in savings rates may be a surprise increase in the Bank of England's base rate but this is not likely to happen soon.”
He added that it is difficult for savers to avoid the effects of current inflation levels and advised them to try and “weather the storm” of low rates until the economy improves.
