Is inflation soaring again?
No, actually it fell last month from 2.8 per cent to 2.7 per cent.
That's good news for savers, isn't it?
Not really. Even at the lower rate, of 840 Isa and non-Isa accounts offered today, there are only three that negate the effects of tax and inflation, according to Moneyfacts.
How much interest do I need to beat inflation?
To beat inflation a basic rate taxpayer needs 3.38 per cent interest while a higher rate taxpayer needs at least 4.5 per cent.
So which accounts do beat inflation?
There are two five-year tax-free Isas – which both pay 3 per cent – offered by Leeds and Skipton building societies. But both require you to lock your cash away. Meanwhile Skipton offers a fixed-rate bond that pays 3.5 per cent until September 2020.
Should I forget about saving and just spend?
With inflation still high, you'll have to spend more if you want to maintain the standard of living you're used to. In fact MGM Advantage reckons each household needs to spend an average £679 a year extra to stay at the same level.
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