Rare win for savers as inflation falls but rates hold firm

Savers chasing the best rates on the market could earn over £1,000 in real terms this year as interest rates outpace falling inflation. Inflation fell from 3.4pc in February to 3.2pc in March, the lowest level since September 2021. With the Bank of England base rate unchanged since August at 5.25pc, many savings accounts are offering inflation-beating rates. The best easy-access account on the market is Ulster Bank’s Loyalty Saver, with a variable rate currently set at 5.2pc. It means a saver with a £50,000 deposit will earn £2,600 in a year, or £1,000 in real terms once inflation is taken into account. Moneybox offers the most lucrative cash Isa on the market with an interest rate of 5.16pc which would secure a real terms return of £980. It’s a rare win for savers who are often given a raw deal by banks which are quick to slash rates on savings accounts and slow to raise them. However, savers still have to shop around if they want to make money. The average interest rate on an easy-access saving account is just 3.11pc, lower than the rate of inflation, according to analyst Moneyfacts. Savers willing to lock their cash away for...

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