Savers in the dark on inflation impact  

As the UK’s inflation figure rises to 3.5% in the year to April, new research findings from Tesco Bank reveals that two fifths (39%) of people don’t know how inflation impacts the values of their savings

Savers in the dark on inflation impact, Key findings:

● 39% of people are unaware of how inflation impacts their savings

● Within this group:

o   21% simply don’t know what inflation does to the value of their savings

o   A worrying 11% believe that inflation increases the value of savings, while 7% think it has no impact on savings

Chris Henderson, Savings and Payments Director, Tesco Bank said: “It’s concerning that so many people are in the dark on inflation and the impact it has on their money. Knowing what it does to your money, and how you can protect your savings when inflation is higher, is an important part of managing your finances.

“When the rate of inflation is on the up, it means the costs of things in our everyday lives are going up. In turn, our money, and our savings, don’t stretch as far as they once did. This means that when inflation is higher, the value of our savings is less. The truth is that inflation is different for everyone depending on what you buy, or pay for, each month but being aware of the UK’s inflation rate is key.

“While there is no fail-safe way to protect your money from inflation, making sure you are getting the best interest rate on your savings can help.”

Research conducted by Censuswide between 6th and 9th May 2025 across 2,000 UK adults aged 18+. Research has been weighted to be nationally representative.