Bounty

It may seem like rocket science to some, but in simple terms the recent dip in inflation means one thing for savers - less bang for your buck.

As recent figures revealed that inflation fell to 3.1% in July from 3.2% a month earlier, savers soon realised that it will be a long slog yet before they achieve any considerable returns on their savings.

Crucially, the level of inflation is still well above the Bank of England's target of 2%, leaving savers struggling to make their savings work in their favour and effectively leaving them with less money in their pockets.

As things stand, basic-rate taxpayers will need to secure a product with a return of at least 3.88% to stop them losing value on their investments, while higher-rate taxpayers have the unenviable tax of finding a savings account that can offer them at least 5.17% as they struggle to overcome the dwindling value of their money and their high rate of tax.

What's more, research has found that only 87 out of the 1,244 savings accounts on the market offer a suitable return for basic-rate taxpayers, while only four accounts offer the kind of interest that higher-rate customers could realistically invest in.