Why you should invest: Inflation-busting savings are back, but how much did high inflation really cost you?

Latest inflation figures mean the base rate is higher than inflation for the first time in around 15 years, and for the first time in two years savings accounts actually beat inflation. But this is not an end game - you should look to invest to really build your wealth and this is why (the figures may just shock you), says Kalpana Fitzpatrick

Woman invest online stocks trading on mobile platform app
(Image credit: wera Rodsawang)

Finally, we’ve reached a point where savings accounts are really worth talking about - not just because you can actually earn some interest on your cash, but because today’s ONS figures show inflation has fallen sharply to 4.6%

It means your cash has a chance of keeping up with the rising price of goods and services as the best savings accounts offer rates above 5% on both easy-access and fixed savings. 

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Header Cell - Column 0 £20,000 pa Invested Monthly MSCI World, dividends reinvested
TOTAL INVESTED £313,333
Amount by end Aug 2023 £857,494
Profit Before Inflation £544,160
Profit After Inflation £316,820
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Header Cell - Column 0 £50,000 pa Invested Monthly MSCI World, dividends reinvested
TOTAL INVESTED £783,333
Amount by end Aug 2023 £2,143,734
Profit Before Inflation £1,360,401
Profit After Inflation £792,050
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Header Cell - Column 0 £20,000 pa Saved Monthly
Total Invested £313,333
Amount by end August 2023 £335,274
Profit before inflation £21,938
Profit after inflation -£58,185
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Header Cell - Column 0 £50,000 pa Saved Monthly
Total Invested £783,333
Amount by end August 2023 £838,178
Profit before inflation £54,845
Profit after inflation -£145,462
Kalpana Fitzpatrick

Kalpana is an award-winning journalist with extensive experience in financial journalism. She is also the author of Invest Now: The Simple Guide to Boosting Your Finances (Heligo) and children's money book Get to Know Money (DK Books).

Her work includes writing for a number of media outlets, from national papers, magazines to books.

She has written for national papers and well-known women’s lifestyle and luxury titles. She was finance editor for Cosmopolitan, Good Housekeeping, Red and Prima.

She started her career at the Financial Times group, covering pensions and investments.

As a money expert, Kalpana is a regular guest on TV and radio – appearances include BBC One’s Morning Live, ITV’s Eat Well, Save Well, Sky News and more. She was also the resident money expert for the BBC Money 101 podcast .

Kalpana writes a monthly money column for Ideal Home and a weekly one for Woman magazine, alongside a monthly 'Ask Kalpana' column for Woman magazine.

Kalpana also often speaks at events. She is passionate about helping people be better with their money; her particular passion is to educate more people about getting started with investing the right way and promoting financial education.