conwy.co

Inflation-linked savings account#

Many people, especially younger people, want to increase their savings. They want to save to buy a home, pay for a home loan deposit, pay for future investments, etc. The problem is that these savings don't keep up with inflation, especially over the long-term.

Wouldn't it be nice if people could get an inflation-linked saving account? This account would maintain the purchasing power of the savings by paying the inflation-rate as interest.

Even better: specialised accounts could be available to track different inflation items, depending on the goal of the saver.

• Housing inflation-linked account - for people saving for a home deposit or future rent payments.
• Travel inflation-linked account - for people saving for future holidays.
• General inflation-linked account - for people saving for general living costs.

Based on their individual financial situation and cost of living, each saver could customise their mix of accounts to best target their goals.