Magic number your savings must earn to keep pace with inflation: SYLVIA MORRIS

Savings earning below inflation are losing value in real terms, and the article says savers should check their rates and consider moving to better deals. It identifies 4.5 per cent as a target, as inflation stood at 3.5 per cent and was expected to rise further.

After the Bank of England raised its base rate to 4 per cent, some providers passed on the full quarter-point increase while others made smaller rises or had yet to announce changes. Rates cited include 4.51 per cent for Atom Bank’s cash Isa and 4.75 per cent for Trading 212, which includes a first-year bonus; some easy-access accounts pay as little as 0.75 per cent. The article also recommends checking bonus terms, considering a cash Isa to reduce savings tax, and noting that eligible deposits are protected up to £120,000 under the Financial Services Compensation Scheme.