Why the cash ISA is on the way back

Prices are rising, but so is the value of individual savings accounts

- Rob Griffin

Millions of savers can benefit from rising interest rates on cash individual savings accounts (ISA ) – despite the cost of living crisis hitting personal finances.

The Bank of England has tackled inflation by increasing its base rate 10 times since December 2021. It is now 4 per cent, the highest for 14 years. This has meant interest rates on many cash ISAs have also gone up.

So, how can you set aside some money for the future when prices are rising and what do you need to know about the cash ISAs that are available?

WHY IS SAVING ESSENTIAL? 

There’s no doubt that the rising cost of living has hit many of us hard.

The UK’s annual inflation rate, as measured by the Consumer Prices Index, is currently at 10.1 per cent, having hit a recent peak of 11.1 per cent in October 2022.