Savers are being left at the mercy of inflation eroding their savings, despite a boom in the number of rate rises in the market. Just 1% of all savings accounts in the market right now are paying enough interest to beat inflation, figures show. Currently, 99% of standard savings accounts are failing to match the current level of inflation – with less than a handful able to offer a return of 2.7% or more.
This means many are losing out because the cost of living is outstripping how much they are earning on their savings. The Consumer Prices Index (CPI) – which measures inflation – rose to 2.7% in August in the highest rise in six months. However, across the savings market, including ISAs and bonds, there are just 4 accounts (based on a £10,000 deposit) that can match or beat this rate.