Savers facing real-term money misery from high-street accounts

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added, deposits of £1,000 and £5,000 made today would be worth £967 and £4,835 respectively in real-money terms when withdrawn two years later.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...