Inflation figures released today show that the Consumer Prices Index (CPI) fell from 0.0% to -0.1% during April, which is the first time the UK has fallen into deflation since the sixties.

Today, all 859 savings accounts on the market beat inflation, and of these, 666* (149 no notice, 78 notice, 231 fixed rate bonds and 208 ISAs) are without restrictive criteria*.

The effect of inflation on savings means that £10,000 invested five years ago, allowing for average interest and tax at 20%, would have the spending power of just £8,684 today – a fall of 13.16%.

Charlotte Nelson, Finance Expert at Moneyfacts.co.uk, said:

“While the low inflation rate is still being celebrated by those who can see their cash going further, savers looking to supplement their income are struggling with not only a lack of choice but abysmal savings rates.

“The withdrawal of the NS&I Pensioner Bonds sees the only decent rates removed from the market. We knew they weren’t going to be around forever, but there is little else left for savers who are wrestling to get good deal.

“A staggering 138 savings accounts on the market pay 0.5% or less, but consumers can easily get over twice this amount on a best buy easy access account.

“The best fixed rate deal today pays 3.53% for five years; however, just five years ago you could open an easy access account paying 3.00%.

“Savers now need to shop around to chase down decent accounts and act fast when they find them. Good deals can get oversubscribed really quickly, so it pays to act before the deal is reduced or withdrawn completely.”

www.moneyfacts.co.uk - The Money Search Engine

Moneyfacts.co.uk is the UK's leading independent provider of personal finance information. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street.

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