Inflation hits cash savings: Consumer prices index jumps to 1.5% while top interest rate is just 1.32%
Inflation jumped to an annual 1.5 per cent, up from 0.7 per cent in March
There was more bad news for savers last week with inflation, measured by the consumer prices index, jumping to an annual 1.5 per cent, up from 0.7 per cent in March.
They need to earn 1.5 per cent for their cash to keep its value in terms of what it can buy.
The top rate is 1.32 per cent from Charter Savings Bank but you must tie up the cash for five years. If you leave it with High Street banks paying 0.01 per cent, your £1,000 will drop to £985.10 after interest is added.