Richard Theo, CEO, Wealthify:
Inflation is the grim reaper of cash savings, and now that it has risen above the Bank of England’s target to 2.3%, it will be more deadly than ever.
We are suffering a silent savings crisis. Rising inflation is another blow to Britons who already suffer rock-bottom interest rates and minimal returns from their cash savings. When inflation sat at 1.8% it was wiping £7.98bn from Britain’s £700bn cash savings annually. With no movement from the MPC on base rate, inflation will continue to erode billions of pounds every single year.
With inflation at its highest level since 2013, the cash savings account has become the finance equivalent of the chocolate teapot. Savers need to act now and find alternative ways to grow their money. It’s high time savers take the fight to inflation and look to investing their money instead, to create the meaningful returns that will help buy houses, pay for weddings and send kids off to university.