The finances of UK savers may be affected by low interest rates and high inflation, an expert has suggested.
According to the Moneyfacts.co.uk spokesman Darren Cook, the spending power of consumers is being hit by rising levels of inflation.
He commented: "Those who are relying on their savings pot to subsidise other income are seeing their savings being eroded on average by 2.92 per cent per year for a basic rate taxpayer."
To combat inflation, Mr Cook's organisation has noted that savers would require an interest rate of 4.38 per cent at the present time, assuming they paid tax at the basic rate.
Meanwhile, Moneyfacts.co.uk's spokesperson Michelle Slade has also recently highlighted the fact that that people looking to get credit cards in the near future may have to meet more selective criteria when trying to access "competitive" introductory deals.
The same applies to balance transfer deals, Ms Slade believes.
Posted by Martin Peacock.
