People need to make sure that they are getting the most from their savings accounts due to the current high level of inflation, one expert has warned.
Writing in the Daily Telegraph, Ian Cowie explains that basic-rate taxpayers need to get a return on 6.25 per cent gross on their savings just to make sure they do not lose their purchasing power.
This increases to 8.33 per cent for the savings of higher-rate taxpayers, he stated.
He recommends that people shop around for the best savings account they can find.
Mr Cowie says: "The most attractive for those who have not used up their £7,200 individual savings account (Isa) might be Abbey's Super Isa Issue 3 which offers 7.75 per cent tax-free ."
However, when opening any savings account people need to make sure that the terms and conditions of the product match their needs, he added.
Last week, Abbey announced that it is to launch a new savings account offering an interest rate of ten per cent.
Those looking to take advantage of the Super Monthly Save 2 savings account will have to take out a protection plan, regular investment or pension with the bank.
Inflation warning over savings accounts
Inflation warning over savings accounts
Mon, 18 Aug 2008
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