Savers worst enemy is creeping up, so what can you do?
The Consumer Price Index (CPI) now stands at 1.80% for January 2017, up from 1.60% in December 2016 and is now at the highest level seen since June 2014. The level is getting closer to the Government’s 2% target, which is the level at which they believe the economy is working well. The saving grace is that unemployment is still very low and wages are currently rising faster than inflation. However, with inflation expected to continue rising this year, we may all be about to feel the pinch, if not already.
For savers this means choosing accounts very wisely. Don't leave money languishing in appalling accounts paying as little as 0.01% a year, which a growing number of high street providers are now paying so called loyal savers. Switch and improve your interest. There are some really positive moves from the challengers banks so far this year with rates on the up. Long may it continue!
And don't forget you can still beat inflation and even retain easy access through High Interest Current Accounts, with rates of up to 5% AER on offer.
If you’d like to talk through how you can improve your savings we’re always at the end of the phone or drop us an email. And for savers with large lump sums looking for help finding, opening and managing their savings our Concierge advisers are ready to help on 0800 321 3581.