Inflation rises to 40-year of 9.1% – how to make sure your savings ‘hold value long-term’

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Last week, the UK’s inflation rate reached a 40-year high of 9.1 percent which will further exacerbate the existing cost of living crisis. In the next few months, experts believe inflation will reach as high as 10 percent at the same time energy bills are predicted to hit £3,000. Due to this, money experts are promoting the best ways people can get better return on their savings to beat the rate hike.

Speaking exclusively to, Connor Campbell, a finance expert from Nerdwallet, shared the best ways savers can beat inflation and the rise in the cost of living.

On the best savings options, Mr Campbell said: “At this current rate of inflation, most Britons will be concerned about ensuring their savings are able to hold their value in the long-term.

“The extremely high rates of inflation currently being experienced can make this very difficult. Despite this, there are some options available which may be able to help savers feel confident that their money is working as hard as possible for them.

“ISAs, for example, could be worthy of consideration. And there are two main forms available: stocks and shares ISAs and cash ISAs.

“Stocks and Shares ISAs should only be used as part of a long term savings strategy due to their investment element. Many providers recommend holding the products for at least five years.”

“Stocks and Shares ISAs should only be used as part of a long term savings strategy due to their investment element. Many providers recommend holding the products for at least fives years.

This particular ISA account gives savers the opportunity to put their money in investment funds, bonds or shares in a private company, which could boost their personal finances if the company does well.

All gains are tax-free and stock and shares ISAs are considered a popular investment opportunity for those dealing with skyrocketing inflation, but Mr Campbell noted performances of accounts can “fluctuate”.

“However, it’s important to stress that they do come with associated risks,” the expert explained.

“The performance of one’s ISA depends on the performance of their investments, so they can fluctuate according to economic volatility and could result in savers suffering permanent losses.

“It is therefore important to consider one’s risk appetite before Britons lock their savings away.

“Of course, the risk isn’t for everyone. In this case, cash ISAs might be a better alternative. Cash ISAs act in a similar way to traditional savings accounts and offer a fixed rate of return.

“They come with the added benefit of allowing savers to enjoy tax-free returns on their savings, something which could be useful for savers who have or expect to save a substantial amount. “

As well as this, Mr Campbell noted the urgent need for a long-term economic plan to help savers get back on their feet after these continuous hikes to the inflation rate.

He added: “It is right that a long-term view is needed as the financial strains incurred from the hike will be felt for some time.

“Certainly, short-term options like a council tax rebate will be gladly accepted, but likely not offer the help needed for a crisis that will stretch on for another 12 months or longer.

“One of the most valuable policies is ensuring that individuals have access to all the necessary information to help them make informed decisions about their financial futures.

“Increasing the availability of free financial guidance services, such as Citizens Advice and Money Advice Service, would be invaluable.

“So too would guidance towards consumer-focused comparison websites. Essentially, any steps taken to empower individuals with financial knowledge would be beneficial to helping savers get back on their feet.”

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