Current conditions are the most favourable for savers that we have seen in this country for almost two decades.
Despite low rates forecast to continue well into 2010, deflation means that the discrepancy between growth and the rate at which savings are devalued is the greatest it has been since 1991.
This means record returns for savers, with higher rate tax payers earning, on average, 2.01 per cent on savings after tax and inflation – the highest since October 1991, the very midst of the last recession, when savers earned a net 2.11 per cent.
(Source: Moneyfacts for The Sunday Times)