Halifax savings history charted

Halifax has released new research tracking the fortunes of savers over the last 40 years and examining the impact of inflation on the rate of interest paid to savers.

The research found that savers now have more choice of savings accounts than at any time in history, with options such as branch-based, internet, telephone, postal, tax-free, bonus accounts, all a possibility.

Savers got both the best "real" and "nominal" rates of return during the 1980s, with the best year ever for savers coming in 1986 when the real rate of return was plus 7.5 per cent.

The 1970s were the toughest times for savers, who received positive rates of return for only two out of the ten years due to inflation, hitting an all-time low in 1975 when the real rate of return was minus 14.1 per cent.

Cheryl Millington, head of savings at Halifax, said that the figures suggested that high inflation had a direct influence on the rates of return that savers saw.

"The evidence suggests that savers have fared well during most of the last 40 years," she said.

"What is very clear however, is that periods of high inflation eat into the real rates of returns that savers receive."