UK savers are set to collectively receive a record amount from interest payments on their savings pots this year after rates soared.
Savers will likely earn some £45 billion through interest payments this year, according to Janus Henderson Investment, on the back of the highest bank rates since 2007.
This would see the figure triple from last year, the group said, as well as being worth more than all the payments made to savers between 2017 and 2022 combined.
However, given rampant inflation this year, Janus Henderson warned savers were still on course to face real-term losses.
“Despite being at their highest level in 15 years [interest rates] are still not enough to fight the corrosive effects of inflation,” investment head Dan Howe said.
High inflation, which hit 6.7% in September, will mean the value of people’s savings will fall in real terms despite enjoying increased payments on the back of Bank of England rate hikes to 5.25%,
“Taken together, it’s no wonder that many UK savers are struggling to decide how to best protect the value of their hard-earned savings,” Howe added.
So far this year, savers have accrued £32 billion from interest payments, well below the £69 billion Janus Henderson estimates has been wiped off by inflation over the same period.
Either way, experts have previously warned that the best deals may not stick around for long.
Hargreaves Lansdown suggested that savings accounts may already have seen rates peak earlier this month, arguing the current deals may represent the best available to savers.
That said, rates in excess of 5% are indeed still available, according to Moneyfacts data.
Investec PLC (LSE:INVP), for instance, pays some 5.82% on its two-year fixed savings accounts, with smaller lenders also offering similar on-notice accounts.
Paragon Banking Group PLC (LSE:PAG) offers up to 5.25% on its easy access accounts meanwhile, consumer group MoneySavingExpert pointed out on Tuesday.