Savings: Is the price to beat inflation worth paying?

iStock_000007329749XSmallEven though inflation has started to fall, the clamour for savings accounts which beat inflation has never been stronger. But whilst it’s important to beat inflation, is this the only thing savers should be taking into consideration when selecting a savings account? Why is it important to beat inflation? Simply put, if your savings don’t grow by an amount equal to inflation, the buying power will be reduced and you will lose money in real terms. To put it another way. If at ...

Savings: A new account to beat inflation

Leeds Building SocietySavers struggling to find a real, above inflation return, will welcome the launch of two new accounts from the Leeds Building Society. Inflation, as measured by the Consumer Prices Index (CPI), currently stands at 2.80%; savers who receive interest, after tax, of less than this figure, will see the real value of their savings shrink. Since the financial crisis savers have been hit by low interest rates, but the situation has been made worse by relatively high inflation and cuts to savings ...

Inflation: Rate of inflation rises to 14 month high

UntitledThe rate of inflation rose in June to a 14 month high, leaving savers stranded with no options to providing a ‘real return’. The latest figures from the Office for National Statistics (ONS) show the Consumer Prices Index (CPI) rose from 2.7% in May to 2.9% in June. The Retail Prices Index (RPI) also rose by 0.2% to 3.3% in June. Inflation ...

A new era, but no change in interest rates, as savers are left disappointed

No surprises as interest rates and QE remain on hold_istockphotoToday might have marked the start of a new era, as Mark Carney chaired his first meeting of the Monetary Policy Committee (MPC), but the result was all too familiar. The MPC has decided to leave base rate unchanged at 0.5% for another month and also voted for no additional Quantitative Easing (QE) measures. The Bank of England has not changed base rate now since March 2009....