Money roundup video: Inflation halves; energy firm cuts prices

The Independent’s Personal Finance Editor Simon Read talks over the latest Money news

(Peter Macdiarmid | Getty Images)

This week: savings boost as inflation halves; energy firm cuts prices; 10 year mortgages attract borrowers; and tax return reminder.

Inflation drops to 0.5 per cent: but how does that hit your savings?

Inflation hit 0.5 per cent last month, its lowest level since 2000. Falling petrol prices, as well as lower gas and electricity costs drove the decline, according to the ONS.

That should be good news for savers as accounts now just need to pay 0.63 per cent to beat inflation, for standard-rate taxpayers. But only around half of 634 accounts do, reckons Moneyfacts. Of the 634 non-ISA accounts in the market today, just 331 negate the effects of tax and inflation. However tax-free Isas offer a much more positive picture with 179 out of 200 with rates that beat inflation.

E.on cuts prices by £24: good news but energy customers can still get better deals

Big Six energy supplier E.on has cut its standard gas prices by 3.5 per cent, which works out at £24 off an average annual household gas bill. The move will put pressure on its rivals to do the same.

But most gas and electricity customers could save hundreds by switching to a lower-rate fixed tariff.

Rather than celebrating their price reduction, E.on customers could, for example, move to the company’s own new fixed deal and save a further 19 per cent, or an average £212.

Or move away from the Big Six for even bigger savings: as extraenergy's Bright Fixed Price March 2016 v1, for example, could save up to £400 a year on average.

The rise of the low-price 10-year mortgage: but is it a good idea to fix for a decade?

Barclays has launched a 10-year fixed-rate deal at just 2.99 per cent, which is the lowest-ever rate for such a long loan. It’s a sign that decade-long mortgages are growing in popularity.

There were just eight 10-year deals to choose from a year ago, but by last October that number had climbed to 22, and now the figure stands at 77.

They’re attractive as they give you the certainty of knowing how much your monthly mortgage costs will be, which aids budgeting, but they’ve also become much more affordable.

However, you’ll need a hefty deposit of 40 per cent to take advantage of the latest Barclays’ deal.

More on the story here.