More bad news for
top-rate savers

Lots of cash in the bank is bad news for higher-rate taxpayers wanting a return on their nest-eggs, according to price-comparison website Moneysupermarket.com.

It says that with the Consumer Prices Index inflation rate at 1.5 per cent, top taxpayers will need to find deals paying more than 2.5 per cent to get a real return.

But, says spokesman Kevin Mountford, only 7 per cent of easy-access accounts and 5 per cent of cash ISAs are offering such a rate.

He says: "We expected to see saving rates creep down before the end of the year, but if rates go any lower then savers will find it almost impossible to beat inflation.

"Anyone taking out a new deal should look for the highest return on terms that suit them, otherwise as the economy stabilises we might see inflation creep up even more and bite away at those interest rates. I would urge savers to be more attentive than ever to ensure they get the best return possible."

Copyright © Press Association 2009
All articles are copyright The Press Association 2009. News articles provided by The Press Association for Family Investments. Whilst every care it taken to ensure accuracy of editorial content, Family Investments takes no responsibility for any errors or omissions. The views expressed in these articles are not necessarily those of Family Investments.

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