UK: Lock your money in for SEVEN years to beat inflation

The UK’S CPI inflation figure for July remained steady at 2.6%, unchanged from the previous month, and lower than the peak of 2.9% seen in May.

Despite a stabilising inflation rate, it does little to alleviate savers’ concerns as the value of their money continues to decrease over time. Savers must use their initiative more than ever to make their money worth something.

Aside from high interest current accounts and linked saver products, one way to match the 2.6% inflation rate in any savings is to open a fixed bond product and lock away funds for the next seven years.

Challenger PCF Bank is now offering a seven-year bond which pays 2.6%. tThe provider is still fairly new to the savings scene, having only received its bank authorisation in December 2016, but it has been able to enter the market with a big bang, offering some incredibly competitive rates from the outset.

"Aside from high interest current accounts and linked saver products, one way to match the 2.6% inflation rate in any savings is to open a fixed bond product and lock away funds for the next seven years."

Charlotte Nelson of Moneyfacts says: “This new bond from PCF Bank Limited not only enters the market as the highest fixed bond rate, but is also the only savings rate that currently matches the 2.6 per cent CPI rate.”

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