Savers fail to earn good return
Savers continue to struggle to earn a real return on their savings, despite the fall in inflation in November, experts warn.
This means that a basic rate taxpayer needs to find a savings account paying 6% a year to beat inflation, whilst those paying the higher rate of tax (at 40%) need to find an accountnat paying at least 8% interest.
Savers are advised to review their interest payments on a regular basis and to take advantage of introductory bonuses and guaranteed minimum rates on savings accountants. Individuals are urged to use their ISA (Individual Savings Accountants) Allowances to earn interest tax-free.
- Date posted:
03/01/2012
