Savers lost £19 for every £1k put away

SAVERS lost an average £500 on their nest eggs last year as inflation outstripped woeful interest rates offered by the banks.

The average easy access account paid just 0.23 per cent interest in 2018 – while consumer prices rose by 2.1 per cent, according to Office for National Statistics data.

It means a saver who had £26, 03 in the bank – the average balance, according to research by Sunlife – was left £ 9 poorer in real terms because inflation eroded the value of their money. This equates to a loss of £19 for every £1,000 saved, according to Gatehouse Bank, which compiled the research.

The 2.1 per cent rise in inflation as measured by the consumer prices index was the lowest level in nearly two years. It means that inflation is now almost back down to the Bank of England’s target of 2 per cent.

Prices are also rising less than salaries. The average worker’s pay climbed by 3.3 per cent in the year to October, hitting £27,500.