Although the latest Consumer Prices Index (C.P.I.) figure has fallen to 5%, what this means for you as a saver or someone seeking Income, is quite a stark reality.
In order to achieve a ‘real’ return (in other words a return that is above inflation as measured by CPI) this is what your deposit or investment has to yield on an annual basis;
Basic rate tax payer = 6.25%
High rate tax payer = 8.33%
Extra high rate tax payer = 10%
On the basis that the ‘best’ one year deposits are currently offering just over 3% as a gross rate, it is fair to say that you need to look elsewhere for higher returns.
If you are worried about falling income from your savings, speak to us today