Rising inflation fails to deter savers

Rising inflation is not deterring consumers from putting money aside into a savings account, according to research by Nationwide.

According to the building society, the number of occasional and regular savers is at the highest level for 16 months.

Nearly eight in ten (79%) consumers are now regular or occasional savers, according to Nationwide’s Importance of Savings Index.

Andy Hutchinson, Nationwide’s head of savings, welcomed the increase in the number of people saving.

“This is despite the continued low interest rate environment,” he said.

“The last time there were so many savers, the Bank of England Base Rate was 5.00%.”

He added that despite the low base rate, savers can achieve a high interest rate on their money.

“Good returns are still available, especially for those who are willing to lock part of their savings into longer term bonds,” he said.

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