The rising rate of inflation seemed to dominate the weekend’s money sections. And considering this is a subject as gloomy as the weather, the papers did a sterling job injecting a little optimism by offering all kinds of solutions for beleaguered savers.
First up, the Observer warned that savers need to take swift action to ensure their money is not eroded and advised people to switch accounts and make the most of their ISA allowance in order to beat inflation. It also suggested paying off as much debt as possible and offsetting your savings.
The Sunday Telegraph noted that the 3.5% rate of inflation is most likely making a large dent in your nest egg, but also offered a glimmer of hope as it looked at five ways to earn 5% on your savings. These took into account bonds, shares, current and savings accounts and offset mortgages. The Saturday Telegraph also looked at the best savings account deals out there, but observed that inflation-busting rates are sadly few and far between.
Meanwhile the Guardian pointed out that the gap between inflation and what savers earn in a typical instant-access account (after tax) is now minus 2.92% – the worst on record. Ouch! They also jumped on the ‘fight against inflation’ bandwagon by questioning inflation-proof bonds from National Savings as an attractive option.
However, lest we forget that there is no quick-fix solution, Jeff Prestridge’s comment in the Mail on Sunday offered a stark reminder of just how savers have been ‘battered’ as he warned that the current situation is likely to get worse before it gets better. Ah, well, it couldn’t all be upbeat.
This week’s scores on the board are as follows:
Credit cards 6%