That stock News

Interest rates have failed at the same pace as inflation, which means that persons who attempted to save some of their revenue this year ended actually lose money.

Savers have already suffered due to declining rates of return on their investment after the Bank of England reduced interest rates to 0.5% there are more than two years.

Rising inflation has added to their misery this year, with numbers, suggesting that investors lost equivalent to 2% on their money.

Is the difference between average inflation astatistical % and 2.6% earned agreement rates average yield fixed savings.

It leaves savers 5 billion pounds out Pocket based on 250 billion total investment of ￡ fixed rate savings accounts according to the figures calculated by Candidmoney personal finance website.

With savers estimated 38 million in Britain, it is the equivalent of each watch losing ￡ 131.

Justin Modray Candidmoney, testified: "high inflation has always left much able to buy with their economies to the beginning of the year."

Consumer preferred measurement of inflation, Government mounted place 3.2% to 3.3% in November, the previous month, according to figures from the Statistical Office national price index. Higher prices of food and clothing contribute to rising.

The measurement of price at retail (IPD) inflation also increased 4.7 percent last month, from 4.5% in October.

Experts warned that the miserable situation of savers is unlikely to change the year next despite widespread speculation that the rate will increase.

Michelle Slade Moneyfacts, stated: "savers are having a pittance of time as rates have fallen to some of the lowest rates in this year, we've seen at some points. Next year is the same. If the discount rate increase, providers will seek to maintain certain existing margins and may pass all increases to savers. Therefore, savers will be new torrid time next year. ?

Rate taxpayers need interest courses per cent to beat inflation. Just two accounts offer rate - Yorkshire and companies building Barnsley pay 6 percent, but require an investment in a bond investment & G to qualify. A higher rate taxpayer must 7.83 per cent, to make a real return.

The individual beating inflation only available on the high street savings account is Santander, paying by 5.5% and savers should invest in a product investment linked to qualify.

View the original article here