Between Jan 2015 and Jan 2018 average inflation was 2.44% per year. This means that, on average, prices are 7.5% higher now than they were in January 2015*.
Therefore, for your savings to have maintained their value they need to have grown by 7.5% since January 2015 and for their value to have increased they need to have grown by more than 7.5%. To have achieved this you need to have been getting at least 2.44% interest or growth on your savings each year.
If you have savings in cash accounts, even if they are in cash ISAs, they will have fallen in value in recent years, as average interest rates on such accounts have been well below 2%, with some paying less than 1%. The rate of inflation in January 2018 was 3.10%*.
If you have savings of more than three month’s expenditure (“rainy day” money) in cash accounts, irrespective of whether or not it is in an ISA, you should talk to one of our professional financial advisers as soon as possible to discuss whether you should move your hard-earned savings to a more suitable home.
If you have savings in cash accounts or want to make additional savings you should talk to one of our professional financial advisers as soon as possible.
*“£1 in 2015 → 2018 | UK Inflation Calculator.” FinanceRef Inflation Calculator, Alioth Finance, 29 Jan. 2018, http://www.in2013dollars.com/2015-GBP-in-2018?amount=1.