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• Jonathan Clark
• 5 April 2017

• Email

Inflation Likely To Rise, Can Your Savings Account Beat it?

• Take action now to protect your savings accounts’ spending power.
• High inflation and low interest rates set to continue .
• Current accounts offering surprisingly good rates in comparison.
• It’s up to you to explore your saving and investment options

High inflation and low interest rates can mean disaster for savers looking to generate income from their hard-earned cash.

Inflation has risen to 1.8%, the highest level in over two years, with some experts predicting that this could increase to a whopping 4% by the end of the year.* Interest rates too are still frozen at a historically low 0.25% and may not budge until 2019.**

Savers must take steps now to stop their ‘nest-egg’ from dwindling under rising living costs and ultra-low interest rates.

Making UK Savings Rates Work for You

Now has never been a more important time to review your finances and find the best savings rates for you.

And for those with no savings account, creating a savings plan to suit your lifestyle and budget is a far more sensible option than having to borrow for large unexpected, living expenses that could harm your long-term finances.

Options for 2017 Savers

• Current Accounts- Surprisingly, these offer some of the best UK interest rates (up to 5%) and have the added advantage of instant cash access. Switching is also easier than ever. Compare UK’s best High Interest Current Accounts.
• Fixed-Rate Saving Bonds- If you don’t mind tying up a minimum sum for up to five years, some fixed rate savings bond deals can offer around 2% upon maturity. See the Best Fixed Rate Bonds.
• Peer-to-Peer ISAs- Lending directly to businesses and individuals can offer higher returns (up to 7%). They incur a certain amount of risk, but the interest earned can be placed in a tax-free ISA wrapper. See the best Investment ISAs.
• Cash ISAs- Using your £15,240 tax-free ISA allowance can help you spilt your savings between Cash, Investments, Help to Buy and more. Compare Best UK Cash ISAs.

For savers, careful planning and regularly reviewing your options is the best way to beat the negative effects of inflation.

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