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Deposit accounts ahead of inflation

Wealthy taxpayers can beat inflation with more than half of all deposit accounts currently available despite not being able to with any last year.

Survey results from Bates Investment Services show that higher-rate taxpayers can get a positive real rate of return with 51 per cent of all deposit accounts.

The same survey last October showed that this could not be achieved with any account out of 762 on the market. It also showed that 93 per cent of basic-rate taxpayers could not get a real rate of return, comp-ared with 22 per cent this year. The results follow on from Bates&#39 criticism of many funds that have failed to outperform dep-osit accounts in flat markets.

The report says: “Savers need to match their deposit savings to the account that not only offers them the chance of positive real returns after tax and inflation, but where the terms of the account suit their own needs and circumstances.

“This time last year it was impossible for higher-rate taxpayers to find a single deposit account that would offer them the prospect of a real rate of return. This is no longer the case.”


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