People who pay the basic rate of tax should take steps to ensure their savings accounts are "inflation proof", one expert says.
Susan Hannums, savings manager at AWD Chase de Vere, said: "Base-rate taxpayers should be able to beat inflation and with most savings account you can hop in and hop out - you are not necessarily tied in - so it should be fairly easy to ensure that you are inflation-proofing your savings."
However, she added that as the government took a higher percentage of their earnings, people in higher tax bands would find this more difficult to do.
She went on to say that base-rate tax payers should ensure that they have not got money in low-interest rate savings accounts. Ms Hannums suggested National Savings Index-Linked certificates as a potential option.
And she said, those in higher tax bands might need to look at investments other than savings accounts to achieve inflation busting returns.
According to the Office for National Statistics the annual rate of inflation stood at 2.1 per cent in December of 2007.
'Inflation proof' savings accounts, investors told
'Inflation proof' savings accounts, investors told
Tue, 05 Feb 2008
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