Inflation in the UK seems to be slowing down as latest figures dropped to 10.1 percent. Despite the falling inflation, high interest rates continue to worry savers around the country as the value of their money continues to erode.
Brian Byrnes, head of personal finance at Moneybox spoke exclusively with Express.co.uk about the amount that savers should have in their accounts.
Inflation impacts everything, from increasing the price paid for essentials to devaluing hard-earned cash savings.
Mr Brynes said: “It has been called the ‘silent killer’ of your money because its effects are not always immediately visible but if not addressed, can have a significant impact on your personal finances and financial goals.
“With inflation running at 10.1 percent, your savings are essentially devaluing by this amount every year, if not earning the equivalent rate of interest.
READ MORE: Universal Credit claimants urged to claim extra benefits and freebies worth thousands
“With interest rates rising in the UK, many savers are delighted by the highest returns on cash savings in a decade.
“However, these rates are still well behind inflation so your long-term savings are still going backwards and losing purchasing power.”
He explained that in this environment, it is important that people keep the “right” amount of money easily available to them in an emergency fund for any unforeseen expenses or to cover the rising cost of essentials e.g. energy bills.
He continued: “We should all have an emergency fund of three to six months’ worth of expenditure readily available in cash savings.
DON’T MISS
“We hope we never have to use this account but it’s there for unforeseen events. We should also keep any big purchases due in the next three years in cash e.g. house deposit, wedding savings etc.
“Above these amounts, you can look to try and earn a better rate with your savings and mitigate some of the damage of inflation.”
The Bank of England has raised the UK interest rate to four percent, a 14-year high.
However, the Bank of England stated that a shorter and shallower recession is now more likely.
READ MORE: Thousands of pensioners losing out on £3,500 a year – how to check if you can claim
Britons are encouraged to look around to find the best rate for their savings.
Even with inflation so high, it’s important the money that is in cash is working as hard as it can to boost savings.
If looking for a place to get high interest, Britons could get five percent on Nationwide’s regular savings account, Start to Save Issue 2.
Nationwide Building Society is offering savers the chance to get five percent interest on their savings plus the chance for a £250 bonus.
Interest is worked out daily and then paid into one’s account yearly on each anniversary of their account opening.
In order to get the best rate available, Britons are encouraged to look around to find a deal that suits them best.
Yorkshire Building Society is also offering a competitive deal for savers hoping to grow their cash.
The building society’s Christmas 2023 Regular Saver is still available to interested savers, who could secure a solid interest rate of 4.50 percent.
However, Britons will only be able to save into this account up until October 31, 2023.
Savers will be able to put up to £300 per month into this account until the final date.
[ad_2]
Share this news on your Fb,Twitter and Whatsapp
Times News Express:Latest News Headlines
Times News Express||Health||New York||USA News||Technology||World News
