Types of Savings Accounts That Beat Inflation



There are certain types of savings accounts that can beat inflation.

There are certain types of savings accounts that can beat inflation.

Official figures have revealed inflation in the UK has fallen for the second month in a row in June.  This will benefit those holding savings accounts.

With inflation down in June by 0.2% over May, the current rate sits at 3.2%.  The downward trend means a basic rate tax payer needs a savings account paying 4.0% or higher to avoid seeing their savings get eaten by inflation.

Even more challenging, a higher rate tax payer has to locate an account anything at least 5.33% to sustain their savings.

The good news for basic rate tax payers is that there are almost 50 savings accounts available for these account holders to meet their goals.

A couple banks offering fixed rate bonds between 4.50% and 4.75% are the ICICI Bank and the State Bank of India.

Many are hoping Bank of England will increase base rate soon, so better savings rates can quickly follow.

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