Falling inflation is mixed blessing
Low returns wouldn't be such a huge downer if it weren't for the enormous elephant in the room: inflation.Prices had been shooting along. Two years ago, inflation on the consumer prices index hit 5.2 per cent.
The good news is the pace has slackened. CPI now stands at 1.6 per cent (March 2014 figure).
However, the inflation fallback eases the pressure on the Bank of England to hike the base rate from 0.5 per cent. Until that happens, savers' cash will struggle to grow in real terms.
Banks are fleecing savers. They suck you in with a good rate, then cut it once you've stopped paying attention. Don't stand for it.