24 Nov 2024

No appreciation for elderly savers

Savings rates are still in freefall with the average no notice rate currently at 0.64%, just above bank base rate.

The recent published inflation figures shows that the real return after basic tax and inflation on an average no notice savings account is 1.06 per cent for RPI, but is at a worrying minus 2.24 per cent for CPI.

Darren Cook, Senior Analyst at Moneyfacts.co.uk, commented:

“Low interest rates are geared to encourage savers to plough their savings back into the economy, but this serves little or no benefit to those who rely on interest from their hard earned wealth to subsidise their pension.

“Most pensioners who are likely not to have to make a mortgage repayment are enjoying no benefits in witnessing the RPI falling below zero for the first time since 1960.

“Savers who have made prudent or astute decisions in the past are currently seeing the real value of their savings depreciate on average by 2.24 per cent per annum.

“We hope that the Chancellor does not ignore these individuals when delivering his long awaited and crucial Budget speech.”

Moneyfacts Group
Moneyfacts is the UK’s leading independent provider of personal financial information and our data is used and trusted throughout the financial industry.

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