New inflation figures showed a surprise fall to 2.4 per cent.
That could currently be ‘beaten’ by just ten standard savings accounts (all fixed rates over four and five years).
Savers could be forgiven for thinking that if they want to beat inflation, therefore, they have to fix for four or five years. However, that’s not necessarily the case.
Sarah Coles, personal finance analyst, Hargreaves Lansdown:
“Beating inflation has to be every saver’s goal: otherwise their money will lose value in real terms every year. However, beating inflation is not the same as trying to find a bank account paying a higher rate than the current inflation figure – because one measures the past and the other looks to the future. It’s the equivalent of assessing recent news coverage, and assuming that Harry and Meghan will be on the front pages of the papers every day forever.”
“If you’re led astray by inflation figures, there’s a risk it could persuade you to fix for a time that doesn’t suit you. Instead, the aim should be to get the best possible return over the most suitable period for your circumstances.”