High inflation levels have meant that 50 per cent tax rate payers are still struggling to see any real return on their savings.
According to research conducted by Moneysupermarket.com, the top rate tax payers need to find a saving return of at least seven per cent if they want to get any real benefit from putting their money away. This is problematic given the fact that there are no accounts on the market at the moment offering this level of return.
Inflation stood at 3.5 per cent last month, after rising for the first time in six months. While this could hold good news for the economy, it is also increasing the pressure on households struggling to make ends meet.
Kevin Mountford, head of banking at the price comparison site, commented: “Only a handful of savings accounts currently beat inflation, and in most cases you have to tie up your funds in a fixed rate product to gain benefit.
“Consumers need to make sure they are on the best deals possible to maximise any returns. The top paying savings accounts currently offer rates over six times that of base rate so by choosing these, you can reduce the impact inflation has on your pot.”