Savers issued ‘act now’ warning as ‘leaky tap’ inflation threatens to ‘drain’ value of pot

Savers are being urged to act fast to protect their money as “leaky tap” threatens to drain the value of their pots.

The latest inflation data showed price growth . However, experts warn that inflation remains persistent and could continue to impact savers’ returns.

Adam Thrower, head of at Shawbrook, said: “With inflation stubbornly refusing to budge below the 2% target, savers may want to act now to protect their money as we approach the end of the tax year.

“It’s like a slow drip from a leaky tap – it might not seem dramatic at first, but over time, it can quietly drain the value of your savings if your isn’t keeping up.”

Sharing some “good news”, Mr Thrower noted: “Some savings accounts are offering rates well above inflation, allowing savers to achieve real growth. However, these are often found outside the well-known high street banks.

“Taking the time to look beyond the big names could leave savers much better off.”

For example, JP Morgan’s Chase is currently offering the top rate for easy access savings accounts with an Annual Equivalent Rate (AER) of 5%.

GB Bank’s NuWealth follows close behind with an AER of 5.01%.

In the fixed rate market, savers can snap up an AER of 4.78% with Vida Savings’ One Year Fixed Rate Bond.

Alice Haine, personal finance analyst at , the online investment platform, said: “While the best savings rates still comfortably outstrip inflation for now, that may change if inflation edges back up again.

“Locking in the best deal possible, while rates remain higher, can be an effective inflation-beating strategy, particularly for those with cash languishing in an account delivering dismal returns.”

She added: “For those with sizeable sums in a savings account, putting them at risk of paying tax on the interest they earn, a more tax-efficient strategy that takes advantage of the benefits that come with Individual Savings Accounts () and pensions is key.

“With increasing numbers of people now paying higher rates of tax because of frozen or cut personal tax thresholds, taking advantage of tax-free allowances will become even more important as we near the end of the tax year.”

The new tax year will begin on April 6, 2025.