UK inflation rate rises ‘hitting savers’

People who rely on savings to supplement their income face greater pain from the rising rate of inflation.

According to Moneyfacts, a basic rate taxpayer would need to find a savings account paying 5% a year to overcome inflation but the average savings rate being paid to this group is 0.83%

Those paying the 40% tax rate would need to find an account paying 6.67%

To find out more about inflation, read the BBC’s article on ‘inflation explained‘.

 

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