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Tuesday 22 October 2019

Most savings accounts fail to beat inflation

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Charlie Weston

Charlie Weston

Banks are paying so little interest to savers that most accounts are failing to beat inflation.

This means that savers are actually losing money in real terms by keeping funds in banks.

A new survey has found that almost six out of 10 savings accounts are failing to provide a return higher than the inflation rate.

It looked at regular saver accounts, but the same results are likely with lump-sum deposit accounts.

The consumer price index, commonly referred to as the inflation rate, was up 0.7pc in August, according to official data.

But most regular saver accounts have interest rates that are less than this, according to research by price comparison site Bonkers.ie.

This is despite the fact that households have €101.8bn on deposit in banks and credit unions, according to the Central Bank.

Financial expert Karl Deeter said with rates so low consumers should use any spare funds to pay down borrowings.

Irish Independent

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