Jump to main content of pageaccessibility informationSitemap
7 Jul 2020

Go Direct Personal Finance News  2009

Desperate times for savers

Inflation figures released today show the Consumer Prices Index (CPI) decreased during March from 4.4% to 4.00%.

To beat inflation, a basic rate taxpayer at 20% needs to find a savings account paying 5.00% per annum, while a higher rate taxpayer at 40% needs to find an account paying at least 6.67%.

Basic rate taxpayers can choose from 25 accounts that negate the effects of tax and inflation, all but one of which are fixed-rate ISAs. There are no inflation-beating accounts available to higher rate taxpayers and, worrying for everyone, there are no accounts available for any taxpayer that beat RPI at 5.3%.

The effect of inflation on savings means that £10,000 invested five years ago allowing for average interest, inflation and tax at 20% would have the spending power of just £9,587 today.


Sylvia Waycot, spokesperson for Moneyfacts.co.uk, said:

“Whilst a fall in inflation is welcome, it won’t change the fortunes of the nation’s savers who are still battling against shrinking spending power and a lack of inflation-beating savings accounts.

“CPI is still double the Government’s 2% target, which spells desperate times for savers who have almost nowhere to place their money to beat inflation.

“Pensioners trying to supplement their income with interest will feel the ensuing pain the most.   

“Over the last six months the number of savings accounts that beat inflation for basic rate taxpayers has dropped from 118 to 25 today, 24 of which are fixed rate ISAs.

“Cash ISAs limit the amount of investment and therefore return, which is yet a further hindrance when trying to make ends met.” 

Moneyfacts Group
Moneyfacts is the UK’s leading independent provider of personal financial information and our data is used and trusted throughout the financial industry.



Think carefully before securing other debts against your home, your home may be repossessed if you do not keep up repayments on your mortgage.

Go Direct.co.uk is a trading style for website purposes of Go Direct UK Ltd.

Go Financial Services is a trading style of Go Direct UK Ltd which is an appointed representative of Personal Touch Financial Services Ltd which is authorised and regulated by the Financial Conduct Authority. Registered in England & Wales Company 5703224. FCA Number 456600

We normally do not charge a fee for mortgage advice, however this is dependent on your circumstances. Our typical fee would be £500

Mortgage Guide | Remortgage Guide | Life Insurance Quote | Mortgage Life Insurance | Decreasing Life Insurance | Home Insurance Quote | Conveyancing Quote | Mortgage Comparison | Free Mortgage Advice | Mortgage Rates | Mortgage Payment Calculator | Mortgage Protection | Best Mortgage | Mortgage Lenders | Income Protection | Remortgage Lenders | Gas and Electric | Remortgage Calculator