Savings deals have failed to beat inflation for 12 months

Rachel Springall, of Moneyfacts, said: “The top deals today can either match or beat the market-leading deals seen this time a year ago, but sadly rising inflation is taking its toll. 

“The Bank of England predicts inflation will be beyond the 2pc target for some time yet, but even if inflation fell to this level there are few options for savers to choose from that would outpace this rate.”

Last month the Bank Rate increased by 0.25 percentage points to 0.75pc as policymakers moved to curb rising costs, but leading banks have failed to pass the full rate rise onto savers.

“At present it is the challenger banks and building societies which are competing in the cash savings sector, with notable improvements to the easy access sector in recent weeks,” Ms Springall added. 

Some of the biggest banks and building societies, including Lloyds, Halifax and Nationwide, still offer just 0.01pc on easy-access savings accounts. NatWest, RBS and Santander increased the rate on their easy-access accounts from 0.01pc to 0.1pc following the Bank of England’s Bank Rate rise.

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