The rise in inflation means that savers have to place their cash in better accounts to make a return.
People who rely on their savings will be most affected by the rise in inflation.
The value of savings may be eroded further following the rise in the Consumer Prices Index to 4.1% in January.
Financial website Moneyfacts.co.uk said that the current average rate on a savings account is 0.83%. Basic rate taxpayers who continue to keep their cash in low return accounts could see the value of their money eroded by 3.34% a year.
A basic rate taxpayer needs to place their savings in an account paying at least 5% in order to make a return. Higher rate tax payers are worse off as they need to locate an account with an interest rate of 6.67% to ensure that the value of their savings does not fall after tax and inflation figures are taken into account.