Savings accounts need extra £80 a month to keep up with inflation says Abbey

23 October 2008 / by Rachael Stiles
The average saver needs to top up the amount they currently put aside by almost £80 just to keep up with soaring inflation according to research from Abbey.

Abbey Savings has found that more than a third of savers should increase the regular payments into their savings accounts each month by £78.60 if they are to take inflation into account.

More than half of savers have already been savvy enough to increase the amount they save each month during the financial crisis, saying they have done so in preparation for a rainy day or an emergency.


As the cost of living – such as energy bills and mortgage rates – rise amid inflation and difficult lending conditions, it is more important than ever for consumers to put some money aside in case they need it.

People are increasingly discovering the importance of having savings set aside as unemployment levels increase and people face losing their homes.

"Inflation has been running well above the target rate of two per cent. While much attention has rightly focussed on savings accounts paying in excess of inflation, this ignores a core point - that savers should increase the amount they are saving to keep pace with inflation." Reza Attar-Zadeh, director of Abbey savings accounts and investment, said.

"Therefore regular savers should review their savings on an ongoing basis - and top up if necessary - to ensure that they are inflation proofing their capital. Equally it is very important to choose strong paying savings accounts."

© Fair Investment Company Ltd