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The crucial inflation error costing Brits hundreds of pounds in their savings

The Independent·Lori Campbell·20 days ago
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Brits are becoming increasingly focused on saving, with Google searches for “how to save money UK” jumping by two thirds (67 per cent) in recent months and emergency funds now the top savings priority for more than two in every five (44 per cent) workers. But new figures suggest millions are still leaving cash in accounts that are losing money to inflation . Analysis of CACI data by savings app Spring found £612.4 billion is currently held in savings accounts paying three per cent interest or less. With inflation now running at 3.3 per cent, and set to go higher across 2026, that means many savers are effectively going backwards in real terms, even if their balance appears to be growing. The figures cover 69.4m savings accounts, with the average balance in accounts earning 3 per cent or less standing at £8,812. Someone with around £10,000 in a low-paying, one per cent account could be missing out on more than £280 a year, compared with a more competitive easy-access deal.…

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