Effect of CPI/RPI on savings - losing savings?

funkey_monkey

Hi,

With inflation up to 4.4% I was wondering how this is going to effect my savings. I've been reading another web site and one person has stated:

Is there any organisation that represents savers? It seems that with 5% inflation, noone ever mentions the fact that savers are losing their money.

What interest rates do I need to being getting to avoid losing money - I'm assuming I need 5% net to clear this?

Thanks.

dunstonh

RPI (the better measure) is at 5%. So, your returns need to match that to stand still. Historically cash deposits barely keep up with inflation with periods when they just about beat it and periods when they dont.

StevieJ

Have a look at NS&I inflation adjusted saving certificates they pay RPI + 1% but you need to keep them for at least one year.