With inflation going up and banks slashing deposit rates, financial comparison site Mozo.com.au says there are now no savings accounts with an interest rate high enough to keep savers ahead of tax and inflation. Mozo says interest rates have been slashed on 35 savings accounts since the beginning of the year. At the same time, inflation has risen from 1.50 per cent to 2.10 per cent, meaning average-income savers need to earn an interest rate of at least 3.11 per cent. The highest savings account rate on the market is now just 3.05 per cent, with the best term deposit rate currently 3.40 per cent. Evidencing a gloomier outlook, the Westpac/Melbourne Institute survey of consumer sentiment fell by 1.8 per cent in June to a 14-month low of 96.2. A reading below 100 denotes pessimism. Faced with this sentiment, then, consumers gave their quarterly rankings for the wisest places for savings: topping the list was "banks" (27.2 per cent). "Superannuation" recorded its highest favourable reading (7.6 per cent) in a decade.