The top inflation-beating savings accounts
The consumer prices index (CPI), which is the official measure of inflation, rose from 2.4% to 2.6% during July - the first time it's risen since March.
It was also heightened because many shops launched their summer sales earlier than usual in the year, so there was not the usual boost in July from these.
The Retail Prices Index (RPI), which includes mortgage interest payments, also increased, to 3.2% from 2.8% in June.
How are our savings affected?
As inflation edges upwards the number of savings accounts which beat this rate has also declined.This is important as if your savings account pays a rate below that of inflation, your money is losing value.
Although the situation is not as dire as earlier in the year, a basic-rate taxpayer paying 20% now needs to find an account paying at least 3.25% while for a higher-rate taxpayer this rises to 4.30%.
To show how our savings have been affected by inflation, £10,000 invested five years ago would now only be worth £9,243, when interest and tax at 20% are taken into account, according to Moneyfacts.
What savings accounts can we choose from?
Although there are 1,092 savings accounts across the market, only 227 of these negate the impact of tax and inflation for a basic-rate taxpayer and there's only two to choose from for those paying 40% tax.
This is 30 less than a month ago and of these accounts, there is not a single no-notice account. Three are notice accounts, 96 are fixed rate savings accounts and 128 are ISAs.
For those taxpayers at 40% the only two accounts around which negate inflation come from the Yorkshire Bank and Clydesdale Bank and pay 4.39% on a minimum deposit of £1,000. But these are both five-year accounts so you have no access to your cash for the whole period.
What other options are there?
For those savers who aren't happy locking up their cash over the long-term, a regular saver account is another option. Both HSBC and First Direct offer these paying 8%, but you need to be a customer first and you can only put a set amount away each month.
Keeping an eye on the market and comparing savings accounts is the best way to make sure you get the most competitive rate and the right type of deal for your circumstances.
Top savings accounts to beat inflation
- Rory Mcllroy win triggers Santander ISA bonus
- The best Cash ISAs right now
- Children 'loaning money to parents'
- Compare savings accounts