Many people don’t fully appreciate the effect that inflation can have on their savings. Quite simply, when inflation is higher than the interest you earn it can be devastating as it eats into the real value of your money and your future spending power.
In the year 2000 the average price of a loaf of bread was 52p – today it’s £1.07 – an increase of 106%. Has your interest rate kept pace?
To see the true damage that inflation has on your savings, fill in the options on our calculator below. Enter the details of your savings account to see how inflation will affect it.