One of the best ways to tackle ever-growing inflation rates is to invest in a savings account. Savings accounts can take many forms, each with different advantages and disadvantages.
Regular Savings Accounts
Regular savings accounts often have rates that are high enough to outstrip inflation. However, unlike other types of accounts such as instant-access or fixed-rate bonds, the account holder is often much more restricted on the amounts of money that can be paid in. Average deposits can range from £250 to £500, with rates only payable for a limited time.
Current accounts can offer decent rates, but only for small balances. They tend not to offer high interest rates but allow the account holder to withdraw and deposit money more freely. With current accounts it’s important to make sure that the minimum monthly payment threshold is met, this is required for the account to qualify for interest.