The announcement that CPI has fallen to 2.4% for April 2013 will be a relief for many savers – and at last tax paying savers can choose from a smattering of accounts which had only been ISAs so far this year – but unfortunately it’s likely to be short lived.
There are now 14 ISAs and one non ISA Fixed Rate Bond that match or beat inflation for basic rate tax payers – up from just two in total. Higher rate taxpayers will still have to opt for a cash ISA but it’s at least a move in the right direction. Of course nothing is simple in the world of savings as several of these accounts have conditions such as high minimum balances and/or are restricted in some way.
Anna Bowes, Director of savingschampion.co.uk “In Mervyn King’s last inflation report, he suggested that inflation is expected to edge higher in the coming months so this boost for savers is likely to be short lived. The fact is, savers still need to be vigilant – they need to keep a close eye on the rates they are earning over the long term as nothing lasts forever, least of all a competitive savings rate”
Savings Champion’s free Rate Tracker tool makes monitoring your savings easy. Simply enter the provider, account name and balance and SavingsChampion will let you know when the rates change and if a better rate is available.
