Average Easy Access Saver Lost Nearly £500 in 2018

  • Inflation takes a smaller, but still severe, bite out of nest eggs compared with 2017
  • Average savers’ £26,403 nest egg would still have lost £494 due to inflation
  • 2018 CPI came in at 2.1% this morning

The average saver using easy access accounts lost almost £500 in real terms during 2018 according to data released today, as inflation continued to eclipse rates, analysis by Gatehouse Bank shows**.

The average British saver saw marginally better instant access deposit rates last year. However the average savers’ £26,403 nest egg would still have shrunk by £494 in real terms once inflation was factored in. 

The CPI annual measure of inflation for 2018 was revealed to be 2.1% as official data was released this morning. 

Savers relying on easy access accounts would have suffered a real terms loss of £19 on deposits of £1,000, £37 on savings of £2,000, £94 on a lump sum of £5,000 and £468 on £25,000.

The modest change in fortunes for Britain’s embattled savers was mainly due to a much lower rate of inflation. CPI fell from 3% in 2017 to 2.1% last year. 

Easy access accounts offered only 0.15% interest on average in 2017. This improved last year but only marginally, rising to 0.23% in 2018. 

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Author: The Muslim Wealth Portal

Navigating the UK towards Halal Finance