As inflation rockets to 4.40%, Julie Smith looks at alternative cash ISA options

As inflation rockets to 4.40%, Julie Smith looks at alternative cash ISA options

22 March 2011 / by Julie Smith

"Today inflation hit 4.40%, and this, combined with low interest rates means bad news for cash ISA savers.

"As the end of the tax year draws closer, banks and building societies have upped their game to offer improved rates for cash ISA savers, helping ease the pain of low interest rates and rising prices. But for many, even this last minute surge is not enough, and savers are wondering where to turn to find a cash ISA deal that beats inflation.

"If you are looking for straight cash ISA to beat inflation, I am afraid pickings are slim, but there are a few other options. 

"If you are looking for a middle ground between a savings account and stock market linked investments, it might be worth considering a structured deposit plan. These can provide an alternative cash ISA option that could potentially offer a 'real' rate of return.

"There are various types of structured deposit plans available, all of which can be used in a cash ISA and are eligible for the Financial Services Compensation Scheme."

Find out more about structured cash isas