Savers make no return

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With inflation at its current level and with interest rates so low, there is virtually no chance that the majority of savers will even make a return on their capital that is being stored in savings accounts.

Inflation has dropped recently, but that does not have a drastic affect for savers, due to the interest rates being at ones of history’s low points

Savers make no return

Savers will struggle to make a real return on their money despite last week’s fall in inflation.

Although the consumer price index (CPI), the government’s favoured inflation measure, fell from 3.1% in December to 3% in January, few savings accounts pay enough interest to enable a tax-paying saver to even match inflation at this level - a basic rate taxpayer would need to earn 3.75% and a higher rate one 5%.