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A year passes with no inflation-beating savings deals

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Rachel Springall, Press Officer
Rachel Springall, Press Officer / Finance Expert T: 01603 476210 E: Email Rachel
18/05/2022

A year passes with no inflation-beating savings deals

Inflation has now eaten away at savings accounts for an entire year, despite notable uplifts to savings rates across the market. Moneyfacts.co.uk reveals the top rate deals available to savers searching for a competitive return to ease inflation’s force.

A year passes with no inflation-beating savings deals

Inflation has now eaten away at savings accounts for an entire year, despite notable uplifts to savings rates across the market. Moneyfacts.co.uk reveals the top rate deals available to savers searching for a competitive return to ease inflation’s force.

  • The Consumer Price Index (CPI) rose to 9.0% during April, from 7.0% in March.
  • The number of deals able to outpace inflation has not changed since last month. There is not one standard savings account that can outpace 9.0%*.
  • The predicted rate for inflation during Q2 2023 is 6.6%.
  • In May 2021, there were no deals that could beat 1.5% (April 2021 CPI) and in May 2020, there were 376 deals (24 easy access, 49 notice accounts, 24 variable rate ISAs, 70 fixed rate ISAs and 209 fixed rate bonds) that could beat 0.8% (April 2020 CPI)*.
  • The Consumer Price Index (CPI) rose to 9.0% during April, from 7.0% in March.
  • The number of deals able to outpace inflation has not changed since last month. There is not one standard savings account that can outpace 9.0%*.
  • The predicted rate for inflation during Q2 2023 is 6.6%.
  • In May 2021, there were no deals that could beat 1.5% (April 2021 CPI) and in May 2020, there were 376 deals (24 easy access, 49 notice accounts, 24 variable rate ISAs, 70 fixed rate ISAs and 209 fixed rate bonds) that could beat 0.8% (April 2020 CPI)*.

 

Savings market analysis

Top savings deals at £10,000 gross

20-May-20

19-May-21

13-Apr-22

Today

Easy access account

National Savings & Investments – 1.15%

Atom Bank – 0.50%

Chase – 1.49%***

Chase – 1.49%***

Notice account

ICICI Bank UK – 1.59% (95-day)

Charter Savings Bank – 0.67% (120-day)

OakNorth Bank – 1.25% (120-day)

PCF Bank – 1.63% (180-day)

One-year fixed rate bond

Gatehouse Bank – 1.50%**

Atom Bank – 0.85%

Al Rayan Bank – 1.85%**

Vanquis Bank – 2.27%

Two-year fixed rate bond

QIB (UK) – 1.65%**

Zopa – 0.89%

Al Rayan Bank – 2.20%**

Al Rayan Bank – 2.68%**

Three-year fixed rate bond

Gatehouse Bank – 1.75%**

Zopa – 1.00%

Cynergy Bank – 2.28%

Al Rayan Bank – 2.78%**

Four-year fixed rate bond

BLME – 1.70%**

Zopa – 1.04%

Gatehouse Bank – 2.25%**

Ikano Bank – 2.75%

Five-year fixed rate bond

Gatehouse Bank – 1.85%**

Gatehouse Bank – 1.40%**

Gatehouse Bank – 2.50%**

Hodge Bank – 2.83%

**Islamic bank, pays an expected profit rate. ***Available to new and existing Current Account Customers. Inflation announcement dates. Source: Moneyfacts.co.uk

 

ISA market analysis

Top savings deals at £10,000 gross

20-May-20

19-May-21

13-Apr-22

Today

Easy access ISA

Al Rayan Bank – 1.10%**

Yorkshire Building Society – 0.45%

Marcus by Goldman Sachs® – 1.00%

Marcus by Goldman Sachs® – 1.00%

Notice ISA

Monmouthshire BS – 1.25% (30-day)

Aldermore – 0.35% (30-day)

Melton BS – 1.00% (100-day)

Melton BS – 1.00% (100-day)

One-year fixed rate ISA

Al Rayan Bank – 1.20%**

Hampshire Trust Bank – 0.51%

Gatehouse Bank – 1.40%**

Virgin Money – 1.76%***

Two-year fixed rate ISA

Al Rayan Bank – 1.40%**

State Bank of India – 0.65%

Gatehouse Bank – 1.75%**

Shawbrook Bank – 2.00%

Three-year fixed rate ISA

State Bank of India – 1.35%

Shawbrook Bank – 0.71%

Gatehouse Bank – 1.85%**

Hampshire Trust Bank – 2.16%

Four-year fixed rate ISA

Hodge Bank – 1.30%

Hodge Bank – 0.65%

Gatehouse Bank – 1.90%**

UBL UK – 2.17% (paid on maturity)

Five-year fixed rate ISA

Gatehouse Bank – 1.40%**

Shawbrook Bank – 1.10%

Gatehouse Bank – 2.10%**

Furness BS – 2.20%

**Islamic bank, pays an expected profit rate. Inflation announcement dates. ***Available to new and existing Current Account Customers.  Source: Moneyfacts.co.uk

 

Savings market analysis

Top savings deals at £10,000 gross

20-May-20

19-May-21

13-Apr-22

Today

Easy access account

National Savings & Investments – 1.15%

Atom Bank – 0.50%

Chase – 1.49%***

Chase – 1.49%***

Notice account

ICICI Bank UK – 1.59% (95-day)

Charter Savings Bank – 0.67% (120-day)

OakNorth Bank – 1.25% (120-day)

PCF Bank – 1.63% (180-day)

One-year fixed rate bond

Gatehouse Bank – 1.50%**

Atom Bank – 0.85%

Al Rayan Bank – 1.85%**

Vanquis Bank – 2.27%

Two-year fixed rate bond

QIB (UK) – 1.65%**

Zopa – 0.89%

Al Rayan Bank – 2.20%**

Al Rayan Bank – 2.68%**

Three-year fixed rate bond

Gatehouse Bank – 1.75%**

Zopa – 1.00%

Cynergy Bank – 2.28%

Al Rayan Bank – 2.78%**

Four-year fixed rate bond

BLME – 1.70%**

Zopa – 1.04%

Gatehouse Bank – 2.25%**

Ikano Bank – 2.75%

Five-year fixed rate bond

Gatehouse Bank – 1.85%**

Gatehouse Bank – 1.40%**

Gatehouse Bank – 2.50%**

Hodge Bank – 2.83%

**Islamic bank, pays an expected profit rate. ***Available to new and existing Current Account Customers. Inflation announcement dates. Source: Moneyfacts.co.uk

 

ISA market analysis

Top savings deals at £10,000 gross

20-May-20

19-May-21

13-Apr-22

Today

Easy access ISA

Al Rayan Bank – 1.10%**

Yorkshire Building Society – 0.45%

Marcus by Goldman Sachs® – 1.00%

Marcus by Goldman Sachs® – 1.00%

Notice ISA

Monmouthshire BS – 1.25% (30-day)

Aldermore – 0.35% (30-day)

Melton BS – 1.00% (100-day)

Melton BS – 1.00% (100-day)

One-year fixed rate ISA

Al Rayan Bank – 1.20%**

Hampshire Trust Bank – 0.51%

Gatehouse Bank – 1.40%**

Virgin Money – 1.76%***

Two-year fixed rate ISA

Al Rayan Bank – 1.40%**

State Bank of India – 0.65%

Gatehouse Bank – 1.75%**

Shawbrook Bank – 2.00%

Three-year fixed rate ISA

State Bank of India – 1.35%

Shawbrook Bank – 0.71%

Gatehouse Bank – 1.85%**

Hampshire Trust Bank – 2.16%

Four-year fixed rate ISA

Hodge Bank – 1.30%

Hodge Bank – 0.65%

Gatehouse Bank – 1.90%**

UBL UK – 2.17% (paid on maturity)

Five-year fixed rate ISA

Gatehouse Bank – 1.40%**

Shawbrook Bank – 1.10%

Gatehouse Bank – 2.10%**

Furness BS – 2.20%

**Islamic bank, pays an expected profit rate. Inflation announcement dates. ***Available to new and existing Current Account Customers.  Source: Moneyfacts.co.uk

Rachel Springall, Finance Expert at Moneyfacts.co.uk, said:

“An entire year has now passed since there were any standard savings accounts available on the market that could outpace inflation. In May 2021 (April CPI) inflation rose to 1.5%, surpassing every standard savings account that could outpace its eroding impact. Inflation is not showing any signs of getting back to target any time soon. Indeed, the Bank of England forecast for inflation is to hover around 6.6% during Q2 2023, which is far above the current 2% target. Savings rates are encouragingly on the rise and far superior to what could have been acquired a year ago, but inflation would still need to drop down considerably for savers to beat it today.

“Savers coming off a one-year fixed rate bond will be pleased to see the latest top rates for an equivalent term bond are much higher than a year ago, but also more than two years ago. The current top deal surpasses 2%, which was unheard of last year, as this could not even be acquired on a five-year fixed bond. The difference in rate between a fixed bond and fixed ISA remains but ISAs returns are creeping up, so it’s wise for savers to keep in mind their tax-free allowance. As it stands, savers would need to lock into a two-year fixed rate ISA to earn 2%, which may be too much of a commitment for some, particularly if savers expect rates will continue to climb in the weeks ahead.

“The back-to-back Bank of England base rate rises are positive for the savings market, but it is the challenger banks and mutuals who are fuelling the top rate tables with competition. As it stands, many of the biggest high-street banks have passed on very little to their easy access customers, so savers may need to rethink their loyalty and look elsewhere for a better return on their hard-earned cash. Keeping on top of the latest changes in the market is wise, especially as rate increases are prevalent as savings providers jostle market position.”

*Data note: Please note that these savings product numbers only include deals that are available to UK residents (easy access, notice, fixed rate bonds, variable or fixed ISAs) and exclude regular savers and children’s savers (this figure does not count each interest payment option for each account), based on a £10,000 deposit. Higher rates may be available for other levels of deposit.

Rachel Springall, Finance Expert at Moneyfacts.co.uk, said:

“An entire year has now passed since there were any standard savings accounts available on the market that could outpace inflation. In May 2021 (April CPI) inflation rose to 1.5%, surpassing every standard savings account that could outpace its eroding impact. Inflation is not showing any signs of getting back to target any time soon. Indeed, the Bank of England forecast for inflation is to hover around 6.6% during Q2 2023, which is far above the current 2% target. Savings rates are encouragingly on the rise and far superior to what could have been acquired a year ago, but inflation would still need to drop down considerably for savers to beat it today.

“Savers coming off a one-year fixed rate bond will be pleased to see the latest top rates for an equivalent term bond are much higher than a year ago, but also more than two years ago. The current top deal surpasses 2%, which was unheard of last year, as this could not even be acquired on a five-year fixed bond. The difference in rate between a fixed bond and fixed ISA remains but ISAs returns are creeping up, so it’s wise for savers to keep in mind their tax-free allowance. As it stands, savers would need to lock into a two-year fixed rate ISA to earn 2%, which may be too much of a commitment for some, particularly if savers expect rates will continue to climb in the weeks ahead.

“The back-to-back Bank of England base rate rises are positive for the savings market, but it is the challenger banks and mutuals who are fuelling the top rate tables with competition. As it stands, many of the biggest high-street banks have passed on very little to their easy access customers, so savers may need to rethink their loyalty and look elsewhere for a better return on their hard-earned cash. Keeping on top of the latest changes in the market is wise, especially as rate increases are prevalent as savings providers jostle market position.”

*Data note: Please note that these savings product numbers only include deals that are available to UK residents (easy access, notice, fixed rate bonds, variable or fixed ISAs) and exclude regular savers and children’s savers (this figure does not count each interest payment option for each account), based on a £10,000 deposit. Higher rates may be available for other levels of deposit.

Notes to editors

Pioneering financial comparison technology for over 30 years.

Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, business banking, life, pension and investment products in the UK.

Moneyfacts.co.uk is a financial product price comparison site, launched in 2000, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfacts.co.uk shows whole of market data regardless of commercial bias, showing consumers a true picture of the best products based on the criteria they select.

We hope you find this press release insightful. We would appreciate a link back to Moneyfacts.co.uk if you decide to source this information.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

 

Notes to editors

Pioneering financial comparison technology for over 30 years.

Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, business banking, life, pension and investment products in the UK.

Moneyfacts.co.uk is a financial product price comparison site, launched in 2000, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfacts.co.uk shows whole of market data regardless of commercial bias, showing consumers a true picture of the best products based on the criteria they select.

We hope you find this press release insightful. We would appreciate a link back to Moneyfacts.co.uk if you decide to source this information.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

 

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Rachel Springall Press Officer / Finance Expert
Eleanor Williams Press Officer / Finance Expert