Real-terms savings returns have plummeted to their lowest level since February 1976, with inflation eating away almost 9 per cent of the typical rainy day fund last month.
The real annual return on savings fell to -9 per cent in July, according to a study by mutual Scottish Friendly and think tank the Centre for Economics and Business Research (Cebr).
A slight increase in average savings rates meant smaller annual falls in August and September, but these still amounted to real-terms drops of -8.8 per cent and -8.9 per cent respectively.