- ECB increases the envelope for the pandemic emergency purchase programme(PEPP) by E600bn to a total of E1,350bn
- UK Finance says cards used for half of payments for first time last year
- UK Finance announces new Board appointments
- Bank of England/PRA writes to deposit takers on COVID-19: IFRS 9 and capital requirements-further guidance on initial and further payment
- Worrying services sector is so absent in UK-EU negotiations, new academic report finds
- Financial Ombudsman Service received over 270,000 new complaints about UK financial businesses in the 2019/20 financial year
- Creditfix research indicates that Brits feel convident about their post-lockdown finances expired
- Sidetrade indicates latest results of B2B unpaid invoice tracker expired
- ESMA promotes convergence in the supervision of costs in UCITS and AIFs expired
- What is ModelOps-and why should banks care? expired
- Landesbank Berlin chooses SIA for new payment card management system in Germany expired
- MarketFInance approved to start lending under CBILS expired
22nd May 2020
Moneyfacts says inflation easier to beat for now as CPI drops to four-year low
Savers’ spending power will be eroded by inflation unless they pick a savings account that pays 0.8% or more today, but this may not last over the long-term. Despite this relief, consumers will find that interest rates are still falling across the savings market and Moneyfacts.co.uk urges savers to act quickly to take advantage of the top rates. If the UK Government’s inflation target of 2% is hit in the months to come, not one standard savings account on the market can currently outpace it.
The number of deals able to outpace inflation has risen since last month’s inflation announcement, due to a fall in inflation of 0.7%, from 65 in total that beat 1.5%, to 376 today that beat 0.8%. The predicted rate for inflation during Q2 2023 is 2%, but there are no standard savings accounts currently able to beat this.
Statistics released this week show the Consumer Price Index (CPI) fell to 0.8% during April, meaning there are 28 easy access accounts, 49 notice accounts, 28 variable rate ISAs, 80 fixed rate ISAs and 220 fixed rate bonds (based on a £10,000 deposit) can now match or beat inflation*. Within that, 24 easy access accounts, 49 notice accounts, 24 variable rate ISAs, 70 fixed rate ISAs and 209 fixed rate bonds pay more than 0.8%.
In May 2019, 115 deals(108 fixed rate bonds and seven fixed rate ISAs) could beat 2.1%(April CPI) and in May 2018, only 13 deals could outpace 2.4% (April CPI).