No instant-access savings accounts beat inflation and tax Inflation, measured by the Consumer Prices Index (CPI), rose from 2.2pc to 2.7pc in October. After a brief reprieve in September, savers will once again have to search for the accounts that will beat tax and inflation. A basic-rate taxpayer at 20pc will need to find a savings account that offers more than 3.37pc per annum, according to Moneyfacts.co.uk. Of the 965 savings accounts on the market today, basic-rate taxpayers can choose from 40 standard savings accounts and Isas that negate the effects of tax and inflation. These consist of three fixed-rate bonds and 37 Isas, but Moneyfacts.co.uk said there were no easy access accounts or notice accounts on the market that beat inflation. United Trust Bank's 5 Year Fixed Cash Isa offers 3.35pc, but is for "transfers in" from previous years' Isas only. The new figures are bad news for higher-rate taxpayers; those paying 40pc tax would require an account paying at least 4.5pc, but currently there are no non-Isa accounts that can beat this figure. Charlotte Nelson of Moneyfacts.co.uk said: "After a brief spell of falling inflation, savers now have to face up to the reality of it rising yet again. Savings rates are continuing to fall, so investors face a real struggle to generate any sort of real return. Those in retirement in particular rely on their savings as an additional stream of income to supplement their pension, so this will be a real blow. This time last year to obtain a rate of 3.1pc you could choose an easy access account, but now if you were looking for a similar return you would have to tie your money down for up to four years. Best buy savings deals are being pulled left, right and centre so it is imperative for savers to act fast to take up the best rates, before the market evens out. The impact of inflation on savings means that £10,000 invested five years ago, allowing for average interest and tax at 20pc, would have the spending power of just £8,899 today.