Inflation is reduced from 4.5% to 4.2 %

Category: Pensions
Date: 12/07/2011

Inflation figures published today show that like the consumer price index (CPI) in June from 4.5% to 4.2%.

To beat inflation, must find a savings account pay 5.25% per year, while an account at least 7.00% pay a higher rate taxpayer 40% will find must be a basic rate taxpayer at 20%.

Basic rate charged taxpayers can choose 12 accounts, which negates the effects of taxation and inflation, all except two of fixed-rate ISAs are.

Disappointingly, there are only two accounts that suggest retail price inflation to 5.00%.

The impact of inflation on savings means that invested £ 10,000, so that for average interest before five years and tax at 20%, the purchasing power of only £ 9,402 would today have.

Action group save our savers last week wrote to the Bank of England to push interest rates help combat high inflation increases.

The group said that Fund is been wiped £ 50 billion savings, in the last year alone.

And Association (BSA) made a the high rate of inflation to the building societies recently responsible net decline in the savings.

The BSA said that savers to invest their money from its members, the choice instead in investment national savings & certificates that guarantee about the rate of inflation numbers had drawn.

The post has also recently an account that pays about inflation.

"The cost of living can please but misery for anyone who tries to get on their savings by continues unabated,", said Sylvia Waycot, spokesman for Moneyfacts.co.uk.

"The current rate of inflation means that hundreds of thousands of savers need accounts amazing 5.25% pay before they earn a real rate of return on their savings."

"Anything less means that it falls in 'Eroding spending makes case' already almost from the spending power of £ 10,000 £ 600 in just five years destroyed has."

"The plight of pensioners naturally springs to mind, but these messages are also, that a blow to young people who try the average deposit account save a deposit for a first home bearing in mind just pays 1.32%."

"Has in the past 12 months the number of savings accounts, taxpayers beat inflation for basic rate drastically from 96 to a meager 12 today, 10 the rate ISAs are deleted fixed."

"Cash ISAs limit the amount of investment and therefore back, which make even a further obstacle when trying make ends."

Looking for a fixed rate cash ISA - cash ISA compare prices and Best ISA rates for money transfers

Source: moneyfacts.co.uk