The latest inflation figures have dealt another blow to savers who have had to put up with dismal rates of interest on their savings for more than a year.  The rise in the Consumer Prices Index to 3.5pc means basic-rate taxpayers now need to earn 4.38pc on their savings before they begin to see a real return, while higher-rate tax payers need 5.83pc.  With typical rates on a no‑notice savings account dropping to just 0.73pc in the past month, basic-rate taxpayers are losing the equivalent of 2.92pc a year and higher-rate tax payers are losing 3.06pc, according to personal finance experts Moneyfacts.  Yet accounts paying inflation-busting rates are few and far between. Alliance & Leicester and Santander both offer current accounts paying 6pc fixed for a year, but these will be of little use for Britain's hard-core savers, as the rate is only payable on balances of up to £2,500.  Basic-rate taxpayers who are prepared to lock their money away for a few years can beat inflation – but only just. For example, Clydesdale, Yorkshire, Saga and the AA all offer five-year fixed rate bonds paying upwards of 5pc, while Barnsley Building Society, Birmingham Midshires and Saga are among those that offer three-year fixed rate bonds paying up to 4.7pc.  Perhaps the only way to guarantee an inflation-beating return is to buy index-linked savings certificates from National Savings & Investments. Its three-year and five-year certificates pay RPI plus 1pc.  NS&I said that the rate is currently equivalent to 5.88pc gross for basic-rate taxpayers and 7.83pc for higher-rate taxpayers. Justin Modray, at candidmoney.com, said: "The downside with NS&I certificates is that you'll have to tie up your money for three or five years, over which time there's a good chance inflation will fall. Although, in the worst case, even if inflation becomes negative once more, you'll still earn 1pc tax-free on the current issues."  With a stuttering economy and the possibility of the double-dip recession, interest rate pundits who had been changing their tune have backtracked. Most reckon that rates will stay low well into 2010 – the Telegraph's Roger Bootle believes they could stay below 1pc for five years. This will pile even more misery on hapless savers who have suffered next-to-nothing returns on their savings.  The reality is that many savers hoping to beat inflation will have to be prepared to accept some risk – or, to put it another way, they must not mind if the value of their investments falls.  History shows that investing in shares has been a decent long-term bet to outrun inflation, particularly if the shares pay growing dividends.  Equity income funds are always worth a look for income-seekers, but do not forget investment trusts – many investment trusts pay a growing income stream year after year.  While equity income unit trusts (Invesco Perpetual's Income fund range managed by Neil Woodford is a long-term favourite of the experts) steal the limelight, investment trusts have been delivering a decent income stream for investors for decades. City of London Trust has paid a dividend for 41 consecutive years and Alliance Trust has notched up 42 years.  Unfortunately, investors will be more than aware that dividends have also come under pressure over the past two years or so. The recession and financial crisis have caused many companies to revise their dividend policy. Of the £57m paid out in dividends by British companies last year, almost half (47pc) came from just five stocks: BP, Shell, Vodafone, HSBC and GlaxoSmithKline.  An alternative for UK income-seekers is to look overseas for funds that pay a growing income stream. Financial advisers are beginning to take an interest in these overseas equity income funds – they reckon that if a "dividend culture'' takes hold in other parts of the world in the way it has in Britain, high-yield stocks could be re-rated, producing attractive returns.  One fund often touted by advisers includes Newton Global Higher Income, while the best performer over the past three years is Lazard Global Income.  Brian Dennehy, of Dennehy Weller & Co, said: "The big mega-cap multinationals (whether based in the UK or elsewhere) have clear valuation and yield attractions. Globally these are perhaps best captured by the Sarasin International Equity Income fund. Also watch out for M&G Global Dividend."  Many financial advisers are still wary of commercial property, which can pay a decent yield of 5pc plus, despite its recovery. If the UK economy does fall back into recession, the sector will come under pressure again.  Mick Gilligan, at Killik the stockbroker, said: "The underlying assets – in other words, the bricks and mortar – are not volatile but the structures they are wrapped in, such as a company or a unit trust, can be. I certainly would be against investing in a commercial property unit trust because there can be liquidity problems (investors could struggle to withdraw their money if they so wish).  "However, for those who are looking to invest in commercial property, the one company we do like is Hansteen Holdings, which is listed on the main stock market. It invests in industrial property in Europe but is expanding in the UK and is yielding around 4pc."  Gold, of course, has long been touted as an inflation hedge (see below). While the pound or dollar may lose their value, depending on the fortunes of the economy, gold historically goes up in value when inflation gathers pace. Gold has had a decent run, which analysts do not expect to be repeated in the short-term, but the big demand for the precious metal still outweighs supply: see the panel below on how to invest.  Mr Modray added: "While stock markets and gold usually beat inflation longer term, the short-term risks are very high, especially during these volatile times. Savers should stay away unless they can commit for five to 10 years or more."  Finally, if you have given up on getting a decent return and are not prepared to take on more risk, there are always trusty old Premium Bonds. True, the prize pot has dwindled too, because of low interest rates and the odds of winning the jackpot are slim. However, your investment is safe, prizes are tax-free, and at least you get to dream of what might be.
Low interest rates and inflation are eating away at our money. But there are    still ways to make a decent return.