There are still no savings account that beat inflation despite the rate falling in November.
Inflation fell for the second month in a row in November, but it is still running at more than twice the Bank of England's 2% target rate.
The consumer prices index (CPI) rate of inflation fell to 4.8% (from 5%) while the retail prices index (RPI), which includes mortgage payments and council tax, fell 0.2% to 5.2%.
To beat inflation, a basic-rate taxpayer paying 20% now needs to find a savings account paying at least 6%, while a higher-rate taxpayer at 40% needs to find an account paying an impossible 8%.
Unsurprisingly, there are now no regular accounts on the market to beat this – down from 57 a year ago - and £10,000 invested five years ago would now only be worth £9,210.
The only options left for savers wishing to beat rising prices are three inflation-linked accounts, which are all structured savings bonds.
Sylvia Waycot, spokesperson for moneyfacts.co.uk, says: "With returns so low and inflation unsteady, people don't know which way to turn.
"This means more and more people are falling into "the eroding spending power trap" which has already wiped nearly £800 off the spending power of £10,000 in just five years."
The three inflation-beating bonds
|Legal & General||Inflation Protected Deposit Bond 1||A minimum return of 17.5% (3.27% AER) or, if greater, 100% of the growth in the Retail Prices Index (RPI), plus the original investment returned||27.01.17||£500|
|Santander||Inflation-Linked Bond Issue 8||105% of the growth in the Retail Prices Index (RPI), or a guaranteed minimum return of 18%, plus the original investment returned||01.01.17||£500|
|Yorkshire BS||Protected Capital Account – Inflation-Linked 10||100% of the growth in the Retail Prices Index (RPI), plus original investment returned||01.02.18||£3,000|