The banking crash of 2008 created a perfect storm for savers. Record low interest rates – designed to stimulate spending and borrowing – allowed rising inflation to far outstrip the returns achievable by saving alone.
Savers were confronted with three choices: watch their capital depreciate in value, invest in an uncertain stock market or simply spend it. In a recession sparked by unsustainable debt, the financially responsible were made to suffer.
But with inflation finally falling to the Bank of England’s target 2%, a number of products are already beating inflation. Are things – finally – looking up for savers?