The Bank of England has delivered yet more bad news to savers with the announcement of an unexpectedly high increase in inflation . New figures have revealed that the Consumer Price Index (CPI) - the central banks measure of inflation - rose to 3.4 per cent yesterday, making it even harder for savers to enjoy a net return on their investments .
In light of the higher inflation, most savers will be struggling to break even on their savings . Indeed, once tax and inflation is accounted for, the average no notice account is currently yielding returns of minus 2.82 per cent. Savers now need to find a savings account with an interest rate of 4.25 per cent to break even, while higher rate tax payers require an account paying 5.64 per cent. Unfortunately for savers, however, just 44 accounts are paying 4.25 per cent of above, while higher rate tax payers will find it even harder to obtain the necessary interest rates, with just 4 accounts available paying this rate.
The elderly are among the hardest hit by the latest announcement, often relying on interest to supplement the income from their pensions .
Bank of England Hits Savers with More Bad News
Financial Services > e-banking > Banking news
Bank of England Hits Savers with More Bad News
Wed, 21 Apr 2010
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