The 12 inflation-beating savings accounts
Feature
by Rebecca Rutt
The official measure of UK inflation remains high at 4.4% - over twice the levels of the government's 2% target.
Meanwhile, the retail prices index (RPI), which includes council tax and mortgage payments, has stayed at 5%.
High inflation means there are now only 12 accounts available if you are looking for an account that gives a return.
Basic rate taxpayers can choose from eight accounts that negate the effects of tax and inflation, all of which are fixed-rate ISAs.
However, there are only three accounts available that beat Retail Price Index at 5.00%.
THE INFLATION BEATERS
| PROVIDER | ACCOUNT | RATE | TERM |
MINIMUM INVESTMENT |
| Chelsea BS | Combination Fixed Rate ISA | 5.00% | 30.9.12 | £1,000* |
| Yorkshire BS | Combination Fixed Rate ISA | 5.00% | 30.9.12 | £1,000* |
| Barnsley BS | Combination Fixed Rate ISA | 5.00% | 30.9.12 | £1,000* |
| Birmingham Midshires | Five Year Fixed Rate ISA | 4.65% | Five years | £500 |
| Clydesdale Bank | Cash ISA Fixed Rate Bond Issue 11 | 4.50% | 29.4.16 | £2,000 |
| Yorkshire Bank | Cash ISA Fixed Rate Bond Issue 11 | 4.50% | 29.4.16 | £2,000 |
| Principality BS | ISA Builder five-Year Plan | 4.50% | Five years | £5,340* |
| United Trust Bank | Five Year Fixed Cash ISA | 4.45% | Five years | £5,340 |
* Savers must invest at least 70% of total investment in an Aviva investment product.
Source: Moneyfacts.co.uk 15.8.11
Along with these accounts there are a further four inflation-linked accounts
INFLATION-LINKED ACCOUNTS (LISTED ALPHABETICALLY)
| PROVIDER | ACCOUNT | RATE | TERM |
MINIMUM INVESTMENT |
| Cambridge BS | Inflation Linked Bond | 1.00% plus RPI | 16.9.16 | £5,000 |
| Post Office | Inflation Linked Bond Issue 2 | 0.50% plus RPI | 10.10.14 | £500 |
| Post Office | Inflation Linked Bond Issue 2 | 1.50% plus RPI | 11.10.16 | £500 |
| Santander | Inflation Linked Bond Issue 4 | 110% of the growth in the Retail Prices Index, or a guaranteed minimum return of 12%, plus original investment returned | 1.4.17 | £1 |
Source: Moneyfacts.co.uk 15.8.11
inflation beaters is the Nortern Rock fixed rate a five year period also
Post office = Bank of Ireland
As for a maximum investment of £1 million, who would trust BOI with more than the FSA limit when they are in the process of screwing investors out of 80% of the value of their Bristol and West PIBS that BOI became responsible for on the takeover.
Who wants to tie money up for 5 years .
Who Indeed wants to tie their money up for 5 years. That just gives the bankers more time to fiddle about with Terms & Conditions , interest rates (look at the disgrace with ISAs) and any other device they can try to con you with. They truly are a wunch. Let's have STABILITY. Nationalise them all.
Gold is the best investment for your money????????
Or do what our grannies did and hide it away somewhere we know it`s safe!!!!!!!!!
Providing we remember where we hid it !
Better rates of return by lending through peer to peer, such as Rate Setter or Funding Circle.
Can you advise what if the best savings investment for pensioners who do not pay tax?
It will be true that Basic rate taxpayers can choose from eight accounts that negate the effects of tax and inflation, all of which are fixed-rate ISAs.