Inflation wipes £36 billion off savings

Inflation and low interest rates are a major headache for savers. UHY Hacker Young report that UK consumers have just over £1 trillion in UK bank accounts with an average interest rate of 1.6%, well below the two main measures of inflation; the Consumer Price Index (CPI) and Retail Price Index (RPI). Consumers trying to get a real return on their savings often turn to fixed rate bonds or Cash ISAs (Individual Savings Accounts) however even these accounts offer little relief with an average interest rate currently of 2.57%. Amazingly £110 billion is in accounts which pay no interest whatsoever. According to the same ...