£10,000 in a high-street savings account today will be worth £9,669 after two years if the latest official inflation figures prove correct, peer-to-peer (P2P) lender Octopus Choice has said.
The firm's calculations are based on this month's revised two-year CPI inflation forecast of 2.7% from the Bank of England (BoE), UK interest rates remaining level at 0.25% and a "typical" high-street two-year deposit account, paying 0.76%. On this basis, Octopus Choice added, deposits of £1,000 and £5,000 made today would be worth £967 and £4,835 respectively in real-money terms when withdrawn two years later. "For people who don't want to tie their money up for two years, putting money today into the average one-year fixed-term high street savings account - paying 0.65% - will deliv...
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