• Wealth Management
    & Employee Benefits:
    0345 241 6500
Request a call

Wealth Management News

Latest News
19 Dec 2012

Only 15 ISAs Beat Inflation Said MoneySupermarket

Only 15 individual savings accounts (ISAs) negate the effects of inflation after the Consumer Price Index (CPI) remained flat at 2.7% in November, price comparison website MoneySupermarket said on Tuesday.

The total number included 10 easy access ISAs and five fixed-rate ISAs.

According to MoneySupermarket, with the current high of the CPI, basic-rate taxpayers need an account paying no less than 3.39% to see any real benefit from their savings. For higher-rate taxpayers, an account would need to pay at least 4.51% and for 50% taxpayers 5.41%.

As a result, basic-rate taxpayers have only four fixed-rate bonds and 16 regular savings accounts that beat inflation to choose from. Higher-rate taxpayers can only choose from seven regular savings accounts that negate the impact of inflation, MoneySupermarket said.

The website´s head of banking Kevin Mountford said that savers using products such as cash ISAs needed to take advantage of the tax free benefits as the start of the tax year end season drew near. He advised savers to look for the most competitive deal, even if they could not find an inflation-beating account, and prepare to switch if they were currently at a disadvantage. Alternative products such as offsetting savings against mortgage borrowing, peer-to-peer lending or structured savings products should also be considered, he added.

Last month, Moneyfacts.co.uk said that basic-rate taxpayers could choose from three fixed-rate bonds and 37 ISAs which beat inflation after the CPI climbed to 2.7% in October from 2.2% previously. It noted that no easy access accounts or notice accounts on the market negated the impact of tax and inflation.

Copyright © M2 Bespoke 2012

Request a call

X

Thank you for your request. We will be in contact as soon as possible.