An increase in the cost of living is bound to diminish ones savings especially if it is deposited in a low-interest savings account. A measure of inflation is the Retail Price Index (RPI). As the RPI increases the value of your savings accounts decreases particularly if the interest rates are very low. Hence it is important that you choose a safe saving bank account with the maximum possible interest rates to get the better of the persisting inflation menace. The following are some of the top savings bank account you can safely depend on for top returns.

You can make full advantage of your annual GBP3600 ISA allowance which will also help to inflation-proof your savings. This is the most tax efficient way to save while also combating inflation as savers do not have to pay 20% savings tax. If you have some more money for saving then choose some of the high interest paying accounts. The regular saver accounts from Alliance & Leicester with 12% and Halifax at 10% are some top options in this regard.
There are also index-linked saving schemes to ward off high inflation. Among the many such schemes available the top picks are Leeds BS Inflation Buster Isa Issue 5 Leeds BS Inflation Buster Bond Issue 8 NS&I Index-Linked Certificate 18th and NS&I Index-Linked Certificate 45th. These products are linked to RPI.

The Leeds BS products pay 2.5% above inflation. However the rate of inflation paid is the rate of RPI on 30 April 2009 in year one and 30 April 2010 in year two. If the inflation comes down by then the rate will decrease correspondingly which may even become lower than other common accounts.

Similarly the National Savings and Investment products offer 1% above RPI in addition to interest paid on maturity. If the certificate is repaid in the first year no interest or index linking is paid. If repaid after the first year but before the end of the term a reduced rate is paid. However the NS&I products do guarantee that your savings will not be eroded by inflation.

Many savers leave only a small portion of their money in current accounts because these have comparably lower rates with other types of deposits. However you can explore the likelihood of locating a safe current account which pays reasonably high interest rates.

The examples are proof that if you are seriously willing to find ways to successfully battle the rocketing inflation with your savings you need only to look around and invest after carefully studying the investment and saving market trend.