Savers must look for alternatives to help beat inflation

Reacting to the decision by the Monetary Policy Committee (MPC) to hold interest rates at 0.5%, discount broker Willis Owen says that with the ISA deadline looming savers simply cannot put off looking for alternative ways to help their savings beat inflation.

Alan Easter, Director of Willis Owen, said: "The news that interest rates have stayed at 0.5% for another month, at least, isn't a big surprise. However, it is hugely significant for savers who continue to see their savings dwindle in value thanks to soaring inflation.

"The message this sends to savers is simple: with high street savings accounts continuing to provide below inflation returns, alternatives should be considered now to help people generate the income they are looking for.

"Placing savings in an investment fund could potentially yield much better returns. And with its tax efficient benefits the ISA allowance should be the first step for all savers. Even the new and most cautious ISA investor has the opportunity to create a portfolio that will potentially outperform the current returns from savings accounts and cash ISAs."