Savers will struggle to find a deal that makes them a return on their money despite last month's dip in inflation, research has shown.
The 3% recorded by the Consumer Prices Index in February, down from a 14-month high of 3.5% in January, means basic rate taxpayers need to find accounts with an interest rate of 3.75% to stop their savings from falling once tax and inflation take their bite.
The situation is worse for higher rate taxpayers, who will have to find an account paying 4.98% just to break even.
No instant access accounts paying such rates currently exist, with basic rate payers having to lock up their money for at least two years to beat inflations.
Savers can, however, get the better of the rate by using their annual ISA allowance, as interest is paid tax-free.
There are currently three instant access accounts paying above this level, with Santander leading the field with a rate of 3.5%, while there are six fixed rate ISAs paying 3%.
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