Today the ONS announces the latest inflation statistics, which show a rise to 2.7%. This places savers in a precarious position: money sitting in current accounts or low paying flexible savers is not even close to meeting the rate of inflation.
They are effectively losing money, little by little. Consumers should be looking to better paying savings products to ensure their money is secure and is generating interest to counter the rate of inflation.
Tandem CEO Ricky Knox said: “I think there’s a lot of confusion around inflation. People hear about it, but they don’t know what it means for them. They need to understand that the money sitting idle in their current account is actively depreciating in value.”
Tandem’s banking app also helps users cut back on their spending. The app analysis financial data across all of their accounts to deliver insight on where savings can be made, be that flagging a rising bill, or an unwanted subscription. As household items increase in price, even small monthly savings help consumers keep afloat.
Knox added: “There are a number of ways to make your money work harder, be that an ISA, a fixed rate saver, or something a little more flexible, not to mention great digital tools that help you budget. It’s important to weigh up your options and pick products that work for you.”