By Max Clarke
Savers in the higher rate tax band would need an unheard of 7.5% per annum from their accounts simply to beat inflation, the moneyfacts comparison site have today calculated in response to this morning’s news that consumer price inflation has jumped by a further 0.5%.
For savers paying the basic rate tax, this figure drops to 5.63%- still nearly double what many accounts offer.
"Every time inflation rises, spending power decreases and any hard earned nest egg or savings safety net is eroded yet further," said Sylvia Waycot, a spokesperson for Moneyfacts.co.uk.
"The only certainty for anyone trying to supplement their income with savings interest is that it will result in disappointment,” continued Waycot."Over the last six months the number of savings accounts that beat inflation for basic rate taxpayers has dropped from 91 to two today, both of which are fixed rate ISAs."