Earning as high an interest rate as possible on your money is always the ideal situation, but it becomes even more important when inflation is running high, as it is in the UK right now.
Inflation rubs away your money’s spending power over time so you must earn at least that level just to stay where you are in buying terms - which right now is 3.6 per cent and expected to rise to 4 per cent across the rest of 2025.
