Why savers need to tie up their money for seven years just to beat inflation
The cost of living rose from 2.5 per cent to 2.7 per cent in the year to August
Savers need to tie up their money for five or even seven years to beat inflation.
The cost of living rose from 2.5 per cent to 2.7 per cent in the year to August, government figures revealed last week.
It means that only one in every 100 accounts matches or beats inflation, research from data analysts Moneyfacts shows.
On one-year bonds, savers are seeing the spending power of their money plummet by as much as 2.2 per cent a year — or a loss of £220 on £10,000.
Santander pays as little as 0.5 per cent, HSBC 0.65 per cent and Barclays 0.7 per cent.
Kent Reliance pays 1.9 per cent and Metro Bank 1.7 per cent. The top online rates are 2.02 per cent from ICICI Bank and Charter Savings at 2.01 per cent.