Moneynet in The Press
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cpi fall makes it easier for savers to secure a real return
Published: 14/07/2009 |
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Andrew Hagger of Moneynet.co.uk reflects on the latest inflation figures. With CPI falling from 2.2% in May 2009 to 1.8% in June 2009, savers are now faced with a far bigger choice of savings accounts that will enable them to get a real return on their money. 1.8% equates to a gross rate of 2.25% for a basic rate tax payer and 3% for a high rate taxpayer. “Competition in the fixed rate bond sector has been fierce and as a result basic rate and higher rate tax payers will no longer find it a struggle to achieve a positive return on their savings. In fact, if savers are happy to lock their cash away for 5 years a 5% plus gross rate is now achievable. The latest research from Moneynet.co.uk reveals that the average gross rate on fixed rate bonds (£5000 balance) is 3.27% with 290 accounts now paying 3% or above and some 400 paying 2.25% or more. “The incentive to save is well and truly back on the agenda, and for those relying on savings interest to supplement their fixed income, the outlook has vastly improved compared with just 6 months ago. Current Best Buys · 1 year Bond 3.85% Post office Growth Bond – minimum deposit £500 · 3 year Bond 4.60% ICICI Bank UK – minimum deposit £1000 · 5 year Bond 5.10% Barnsley Building Society – minimum deposit £100 · 5 year Bond 5.11% Aldermore – minimum deposit £10,000 ENDS
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