Best savings rates 'must provide inflation protection'

Those looking for the best savings rates must take steps to ensure that they are protected from the effects of inflation, it has been claimed.
 
Yorkshire Building Society has said that with the Bank of England monetary policy committee's decision to keep interest rates at the record low of 0.5 per cent this has become increasingly urgent.
 
Simon Broadle, speaking on behalf of the bank, has highlgihted the fact that inflation-linked savings products are performing extremely well in the aftermath of National Savings & Investements' decision to close its bond due to over-subscription.
 
He said: "With underlying market conditions continuing to change we are finding that more and more investors are taking advantage of it."
 
By buying inflation-linked products, consumers are ensuring that they are getting the best savings rates and that their buying power is maintained.
 
Recent information published by advice site unbiased.co.uk has highlighted the fact that savings contributions rose by £18 billion in the second quarter of 2011.

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2011-09-09 12:18:59 © Moneyextra.com