Saving and investing news
Savers need to 'inflation proof' their money
13 February, 2008
People who only pay the basic rate of tax should be able to ensure their savings are "inflation proof", one expert believes.
Susan Hannums, savings manager at AWD Chase de Vere, said: "Base-rate taxpayers should be able to beat inflation and with most savings accounts you can hop in and hop out - you are not necessarily tied in - so it should be fairly easy to ensure that you are inflation-proofing your savings."
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However, she added that people in higher tax bands might struggle to do so.
While base-rate payers should ensure that they haven't got money in low interest rate accounts, those in the higher bands might need to look at investments other than savings accounts, she said.
One option she suggested was National Savings Index Linked certificates.
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According to the Office for National Statistics the annual rate of inflation stood at 2.1 per cent in December of 2007.
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