Investors are losing nearly £ 5 billion in interest, despite the fact that the value of their cash is falling by inflation
Depositors are losing £ 4.8 billion in interest, leaving cash in accounts that pay almost nothing.
Inflation is high for the last 40 years, but depositors are much worse than four decades ago.
In March 1982, when inflation was last at 9 percent, an easily accessible account could earn 9.75 percent.
Fixed rates: Inflation is at its highest level in four decades. But depositors are much worse than 40 years ago, when easy-access bills were paid 9.75%
Excellent ability was not blurred because the interest paid exceeded inflation.
Inflation-adjusted an egg of £ 10,000 would cost £ 10,075 a year. However, despite the fact that rates have risen, today there are no deals that would be close to overcoming or comparing inflation.
Even a maximum speed of easy access of 1.25 per cent means that the same £ 10,000 will fall to £ 9,225 in 12 months – a loss of 7.75 per cent or £ 775.
Paragon Bank’s analysis of more than 30 leading vendors shows that £ 418 billion of money in accounts pays meager rates, so they lose £ 4.8 billion a year.
The Bank of England base rate rose to 1 percent, but easy access rates at major banks rose to 0.1 percent.
With inflation at 9 per cent, this means that a lump sum of £ 10,000 will cost £ 9,110 in real terms in 12 months.
The gap between the rates of large banks and the best deals is widening and is 1.15 percentage points. A year ago it was only 0.49 points.
The most affordable account at Atom or Tandem Bank pays 1.25 percent.
Chase Bank UK pays more than 1.5 percent, but only to depositors who have a current account that is managed through a mobile app.