Savers have been hit by rate cuts over the past year but some rates have edged upwards since last month’s inflation announcement. Moneyfactscompare.co.uk reveals the top rate deals available to those searching for a competitive return.
- The Consumer Price Index (CPI) fell to 3.4% during May, from 3.5% in April.
- There are currently 1,437 savings accounts that beat inflation* (133 easy access, 122 notice accounts, 133 variable rate ISAs, 343 fixed rate ISAs and 706 fixed rate bonds).
- The Bank of England’s modal projection rate for inflation during Q2 2026 is 2.4%.
- In June 2024, there were 1,622 deals that could beat 2.0% (May 2024 CPI) and in June 2023, there were no deals that could beat 8.7% (May 2023).
Caitlyn Eastell, Spokesperson at Moneyfactscompare.co.uk, said:
“Inflation remains above the Government’s target of 2% and is eroding savers’ money in real terms. Since the previous inflation announcement, the best non-ISA deals have crept up slightly for variable and short-term fixed rates whereas the ISA market saw most fixed ISA rates rise. Challenger banks and app-based providers are rife among the top tables as competition continues to attract new customers. Consumers need to consistently search for the best accounts to avoid receiving a raw deal and act swiftly so they can grab the most popular deals before they are pulled or worsen.
“Savers continue to be hit by the handful of base rate cuts over the past year as all the top rates for non-ISAs have dropped compared to the market-leaders in June 2024, so those consumers with a variable account or only fixed for a year may now be feeling the pressure. With longer-term rates out-pacing short-term deals it may be a good time for savers to consider the benefits of locking away their cash for the next five years. Many of the top ISA rates have also been heading on a downward trajectory. Research from the Bank of England shows that £14 billion was invested in ISAs during April, the highest on its records, showing that there is still an appetite among savers to maintain the current ISA allowance. But many investors are still missing out on earning attractive returns as almost £300 billion is sitting in non-interest-bearing accounts.”
