Savers 'can't afford to give up' as inflation hits 3% - what to do as bank loyalty fails

"However, the chunks of it that you don’t need to spend in the next year can be tied up in fixed rate accounts for the most appropriate periods. At the moment you can make one percent by fixing for a year and 1.15 percent by fixing for two.

"If you’re putting the money away for five to 10 years or longer, it’s well worth considering investments. These will rise and fall in value over the short term, but over the long term stand a much better chance of beating inflation.

"It’s worth knowing that these are your options: a guaranteed lower return or more risk in return for more potential growth.

"If the Bank’s inflation warning persuades you to go searching for an alternative, and an internet search suggests you can make over three percent without taking a risk, then there’s a serious danger that you’re being lured in by a scammer.”