Hopefully amongst the readers here are those who do not live by taking out endless credit card debt to pay off the last loans; or perhaps I am being optimistic.
CPI is now at 3.5%, it will fall back later this year, but it means that the best savings accounts only manage to offer to meet inflation for you. So by saving your money you are not adding to your wealth in any sense, merely storing it. This is before the taxman decides to take his share, pushing you into a loss.
Worse, the Pound is down 25% agains the Euro and Dollar and not likely to show any market improvement over the longer term. So now any savings measured on global basis will be well down over the past two years.
The Government is continuing to conspire against savers - so what to do?
Well, my choice is to long and short lots of shares in the market and this makes for quite a good return but requires concentration and is risky if there is a big downturn again - which is not that likely, but might still make the probable list.
So this leaves funds, perhaps Real Return funds the best of which do about 10% a year and don't drop too much except in cataclysmic crash. Or perhaps emerging market funds which buy shares in companies not in £'s but dollars and also in coutnries not suffering from the oppression of insane Government like the UK. As these can be put into an ISA you can even avoid tax on the shares and dividends.
Other choices are paying down debt like mortgages and any other debt and this would certainly be top of my list. However whatever happens don't save in a Bank acccount; it will only make you poorer as that is the Government's wish.