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Big Banks leave savers exposed to £373 inflation loss

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Caitlyn Eastell, Personal Finance Analyst 01603 476169 Email Caitlyn
17/06/2026

Big Banks leave savers exposed to £373 inflation loss

In times of uncertainty, savers may want to keep cash close, but with over 200 easy-access accounts beating inflation, leaving money in low-paying accounts is costly, Moneyfactscompare.co.uk analysis can reveal.

Big Banks leave savers exposed to £373 inflation loss

In times of uncertainty, savers may want to keep cash close, but with over 200 easy-access accounts beating inflation, leaving money in low-paying accounts is costly, Moneyfactscompare.co.uk analysis can reveal.

Mortgages

  • Since the previous inflation announcement, the Moneyfacts Average Mortgage Rate has fallen from 5.64% to 5.54%.
  • Meanwhile, the average two-year fixed rate has fallen from 5.73% to 5.60%. The average five-year fixed rate has fallen from 5.66% to 5.57%.
  • Based on a typical £250,000 mortgage over 25 years, moving from the Moneyfacts Average Mortgage Rate of 5.54% to the average standard variable rate (SVR) of 7.13% would increase repayments by around £2,950 a year (£247 per month).

Caitlyn Eastell, Personal Finance Analyst at Moneyfactscompare.co.uk, said:

“In recent weeks average mortgage rates have been dropping and may now be past their peak, offering a welcome opportunity for borrowers. For homeowners approaching the end of their deal, this could be an ideal time to review their options. Many lenders allow remortgage customers to secure a new rate up to six months before their current deal expires. This will give borrowers peace of mind, particularly while the interest rate path remains uncertain. Locking in a new deal early can also help borrowers avoid any unwelcome jumps in monthly repayments. Borrowers who allow their current deal to roll could see their costs rise sharply; someone on a typical £250,000 mortgage over 25 years could find themselves paying almost £3,000 more per year compared to average mortgage rates.”

 

Mortgages

  • Since the previous inflation announcement, the Moneyfacts Average Mortgage Rate has fallen from 5.64% to 5.54%.
  • Meanwhile, the average two-year fixed rate has fallen from 5.73% to 5.60%. The average five-year fixed rate has fallen from 5.66% to 5.57%.
  • Based on a typical £250,000 mortgage over 25 years, moving from the Moneyfacts Average Mortgage Rate of 5.54% to the average standard variable rate (SVR) of 7.13% would increase repayments by around £2,950 a year (£247 per month).

Caitlyn Eastell, Personal Finance Analyst at Moneyfactscompare.co.uk, said:

“In recent weeks average mortgage rates have been dropping and may now be past their peak, offering a welcome opportunity for borrowers. For homeowners approaching the end of their deal, this could be an ideal time to review their options. Many lenders allow remortgage customers to secure a new rate up to six months before their current deal expires. This will give borrowers peace of mind, particularly while the interest rate path remains uncertain. Locking in a new deal early can also help borrowers avoid any unwelcome jumps in monthly repayments. Borrowers who allow their current deal to roll could see their costs rise sharply; someone on a typical £250,000 mortgage over 25 years could find themselves paying almost £3,000 more per year compared to average mortgage rates.”

 

Savings

  • The Consumer Price Index (CPI) remained at 2.8% during May, from 2.8% in April.
  • The Moneyfacts Average Savings Rate currently sits at 3.57%, which is higher than inflation, meaning savers can get real returns on their cash but it’s still important to shop around for the best rates.
  • There are currently 1,825 savings accounts that beat inflation* (213 easy access, 179 notice accounts, 183 variable rate ISAs, 403 fixed rate ISAs and 847 fixed rate bonds).
  • In June 2025, there were 1,437 deals that could beat CPI which was then at 3.4% (May 2025 CPI) and in June 2024, there were 1,622 deals that could beat CPI which was at 2.0% (May 2024 CPI).

Caitlyn Eastell, Personal Finance Analyst at Moneyfactscompare.co.uk, said:

“As prices rise and economic uncertainty persists, easy access accounts are playing a crucial role for households trying to keep emergency cash within reach. However, major high street banks are lagging, with their most flexible accounts offering just 1.16%^ collectively, leaving savers with little protection against rising prices. By contrast, some challenger banks are offering market-leading easy access rates of up 4.89%. Savers with £10,000 sitting in a big bank easy access account will earn just £116 a year, compared to the £489 they could earn just by switching to the best account. Once savers recognise this £373 yearly loyalty penalty the real-term benefit is difficult to ignore and they will be better off once they make the switch. It’s difficult to stay put when over 200 easy access accounts pay inflation-busting rates. Savers who move away from low-paying high street banks can grow the real value of their cash and stop emergency funds being eaten away by inflation.

“Savers may still be rewarded with even better deals, as savings rates may not have peaked yet. Markets are still pricing in a base rate hike, and a recent Bank of England survey found that 53% of people are expecting interest rates to rise this year. If proven right, banks and building societies are likely to pass this on as they’ll need to compete for deposits. As a result, headline rates may become more attractive, and the flexibility of an easy access account will allow savers to chase maximum returns. However, it’s a double-edged sword. Stubborn inflation means savers’ cash can still be losing power even when their balance ticks up on paper. This is why switching accounts regularly matters. Loyalty rarely pays and the best rates are typically reserved for new money, not existing customers.”

 

^Big Bank easy access selection, £10k gross rates: Barclays Bank, Everyday Saver, 1.00%. HSBC, Flexible Saver, 1.04%. Lloyds Bank, Easy Saver, 0.75%. NatWest, Flexible Saver, 1.00%. Santander, Easy Access Saver (Issue 30), 2.00%.

 

Savings

  • The Consumer Price Index (CPI) remained at 2.8% during May, from 2.8% in April.
  • The Moneyfacts Average Savings Rate currently sits at 3.57%, which is higher than inflation, meaning savers can get real returns on their cash but it’s still important to shop around for the best rates.
  • There are currently 1,825 savings accounts that beat inflation* (213 easy access, 179 notice accounts, 183 variable rate ISAs, 403 fixed rate ISAs and 847 fixed rate bonds).
  • In June 2025, there were 1,437 deals that could beat CPI which was then at 3.4% (May 2025 CPI) and in June 2024, there were 1,622 deals that could beat CPI which was at 2.0% (May 2024 CPI).

Caitlyn Eastell, Personal Finance Analyst at Moneyfactscompare.co.uk, said:

“As prices rise and economic uncertainty persists, easy access accounts are playing a crucial role for households trying to keep emergency cash within reach. However, major high street banks are lagging, with their most flexible accounts offering just 1.16%^ collectively, leaving savers with little protection against rising prices. By contrast, some challenger banks are offering market-leading easy access rates of up 4.89%. Savers with £10,000 sitting in a big bank easy access account will earn just £116 a year, compared to the £489 they could earn just by switching to the best account. Once savers recognise this £373 yearly loyalty penalty the real-term benefit is difficult to ignore and they will be better off once they make the switch. It’s difficult to stay put when over 200 easy access accounts pay inflation-busting rates. Savers who move away from low-paying high street banks can grow the real value of their cash and stop emergency funds being eaten away by inflation.

“Savers may still be rewarded with even better deals, as savings rates may not have peaked yet. Markets are still pricing in a base rate hike, and a recent Bank of England survey found that 53% of people are expecting interest rates to rise this year. If proven right, banks and building societies are likely to pass this on as they’ll need to compete for deposits. As a result, headline rates may become more attractive, and the flexibility of an easy access account will allow savers to chase maximum returns. However, it’s a double-edged sword. Stubborn inflation means savers’ cash can still be losing power even when their balance ticks up on paper. This is why switching accounts regularly matters. Loyalty rarely pays and the best rates are typically reserved for new money, not existing customers.”

 

^Big Bank easy access selection, £10k gross rates: Barclays Bank, Everyday Saver, 1.00%. HSBC, Flexible Saver, 1.04%. Lloyds Bank, Easy Saver, 0.75%. NatWest, Flexible Saver, 1.00%. Santander, Easy Access Saver (Issue 30), 2.00%.

 

 

Savings market analysis

Top savings deals at £10,000 gross

19-Jun-24

18-Jun-25

20-May-26

Today

Easy access account

 Ulster Bank – 5.20% Chase – 4.89% (includes bonus) Tembo Money – 4.71% (includes bonus) LemFi – 4.89% (includes bonus)

Notice account

 Vanquis Bank – 5.35% (90 day) GB Bank – 4.68% (120-Day) Bank of London and the Middle East – 4.37%** (90-Day) Bank of London and the Middle East – 4.30%** (90-Day)

One-year fixed rate bond

 Vanquis Bank – 5.21% Cynergy Bank – 4.50% (payable on maturity) MBNA – 4.75% (payable on maturity) MBNA – 4.85% (payable on maturity)

Two-year fixed rate bond

 Vanquis Bank – 5.06% JN Bank – 4.42% Hampshire Trust Bank – 4.76% Afin Bank – 4.85%

Three-year fixed rate bond

 UBL UK – 4.85% (payable on maturity) JN Bank – 4.45% Oxbury Bank – 4.76% Afin Bank – 4.85%

Four-year fixed rate bond

 Isbank (Raisin UK) – 4.75% UBL UK – 4.54% (payable on maturity) Oxbury Bank – 4.58% thisbank – 4.82%

Five-year fixed rate bond

 UBL UK – 4.95% (payable on maturity) UBL UK – 4.64% (payable on maturity) Close Brothers Savings – 4.80% Afin Bank – 4.90%

**Islamic bank, pays an expected profit rate. Inflation announcement dates. Top rates exclude deals with restrictive criteria. Notice accounts exclude those over 180 days.

Source: Moneyfactscompare.co.uk

 

ISA market analysis

Top savings deals at £10,000 gross

19-Jun-24

18-Jun-25

20-May-26

Today

Easy access ISA

 Trading 212 – 5.07% Plum – 4.79% (includes bonus) Plum – 4.46% (includes bonus) Plum – 4.34% (includes bonus)

Notice ISA

 West Brom BS – 5.10% (60-day) Tipton & Coseley BS – 4.25% (60 Day) Aldermore 4.15% - (60 Day) The Stafford BS 4.10% - (90 Day)

One-year fixed rate ISA

 Virgin Money – 5.05% Castle Trust Bank – 4.27% UBL UK – 4.66% (payable on maturity) Investec Save – 4.68% (payable on maturity)

Two-year fixed rate ISA

 United Trust Bank – 4.67% United Trust Bank – 4.21% Tandem Bank – 4.71% Castle Trust Bank– 4.72% (payable on maturity)

Three-year fixed rate ISA

 Principality BS – 4.50% UBL UK – 4.38% (payable on maturity) Castle Trust Bank– 4.62% Castle Trust Bank– 4.68% (payable on maturity)

Four-year fixed rate ISA

 UBL UK – 4.30% (payable on maturity) UBL UK – 4.25% (payable on maturity) UBL UK – 4.15% (payable on maturity) UBL UK – 4.15% (payable on maturity)

Five-year fixed rate ISA

 UBL UK – 4.43% (payable on maturity) UBL UK – 4.57% (payable on maturity) Close Brothers Savings – 4.66% Castle Trust Bank – 4.72% (payable on maturity)

Inflation announcement dates. Top rates exclude deals with restrictive criteria. Notice ISAs exclude those over 180 days.

Source: Moneyfactscompare.co.uk

 

Data note: Please note that these savings product numbers include deals that are available to UK residents (easy access accounts, notice accounts, fixed rate bonds, variable Cash ISAs and fixed Cash ISAs) and exclude regular savers, children’s savers, variable rate fixed term bonds or ISAs, JISAs and LISAs, based on a £10,000 deposit, gross rates. Higher rates may be available for other levels of deposit.

 

Savings market analysis

Top savings deals at £10,000 gross

19-Jun-24

18-Jun-25

20-May-26

Today

Easy access account

 Ulster Bank – 5.20% Chase – 4.89% (includes bonus) Tembo Money – 4.71% (includes bonus) LemFi – 4.89% (includes bonus)

Notice account

 Vanquis Bank – 5.35% (90 day) GB Bank – 4.68% (120-Day) Bank of London and the Middle East – 4.37%** (90-Day) Bank of London and the Middle East – 4.30%** (90-Day)

One-year fixed rate bond

 Vanquis Bank – 5.21% Cynergy Bank – 4.50% (payable on maturity) MBNA – 4.75% (payable on maturity) MBNA – 4.85% (payable on maturity)

Two-year fixed rate bond

 Vanquis Bank – 5.06% JN Bank – 4.42% Hampshire Trust Bank – 4.76% Afin Bank – 4.85%

Three-year fixed rate bond

 UBL UK – 4.85% (payable on maturity) JN Bank – 4.45% Oxbury Bank – 4.76% Afin Bank – 4.85%

Four-year fixed rate bond

 Isbank (Raisin UK) – 4.75% UBL UK – 4.54% (payable on maturity) Oxbury Bank – 4.58% thisbank – 4.82%

Five-year fixed rate bond

 UBL UK – 4.95% (payable on maturity) UBL UK – 4.64% (payable on maturity) Close Brothers Savings – 4.80% Afin Bank – 4.90%

**Islamic bank, pays an expected profit rate. Inflation announcement dates. Top rates exclude deals with restrictive criteria. Notice accounts exclude those over 180 days.

Source: Moneyfactscompare.co.uk

 

ISA market analysis

Top savings deals at £10,000 gross

19-Jun-24

18-Jun-25

20-May-26

Today

Easy access ISA

 Trading 212 – 5.07% Plum – 4.79% (includes bonus) Plum – 4.46% (includes bonus) Plum – 4.34% (includes bonus)

Notice ISA

 West Brom BS – 5.10% (60-day) Tipton & Coseley BS – 4.25% (60 Day) Aldermore 4.15% - (60 Day) The Stafford BS 4.10% - (90 Day)

One-year fixed rate ISA

 Virgin Money – 5.05% Castle Trust Bank – 4.27% UBL UK – 4.66% (payable on maturity) Investec Save – 4.68% (payable on maturity)

Two-year fixed rate ISA

 United Trust Bank – 4.67% United Trust Bank – 4.21% Tandem Bank – 4.71% Castle Trust Bank– 4.72% (payable on maturity)

Three-year fixed rate ISA

 Principality BS – 4.50% UBL UK – 4.38% (payable on maturity) Castle Trust Bank– 4.62% Castle Trust Bank– 4.68% (payable on maturity)

Four-year fixed rate ISA

 UBL UK – 4.30% (payable on maturity) UBL UK – 4.25% (payable on maturity) UBL UK – 4.15% (payable on maturity) UBL UK – 4.15% (payable on maturity)

Five-year fixed rate ISA

 UBL UK – 4.43% (payable on maturity) UBL UK – 4.57% (payable on maturity) Close Brothers Savings – 4.66% Castle Trust Bank – 4.72% (payable on maturity)

Inflation announcement dates. Top rates exclude deals with restrictive criteria. Notice ISAs exclude those over 180 days.

Source: Moneyfactscompare.co.uk

 

Data note: Please note that these savings product numbers include deals that are available to UK residents (easy access accounts, notice accounts, fixed rate bonds, variable Cash ISAs and fixed Cash ISAs) and exclude regular savers, children’s savers, variable rate fixed term bonds or ISAs, JISAs and LISAs, based on a £10,000 deposit, gross rates. Higher rates may be available for other levels of deposit.

Notes to editors

You are welcome to use part or all of this press release, so long as we are sufficiently sourced. We would appreciate a link back to Moneyfactscompare.co.uk.

Pioneering financial comparison technology for over 35 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, banking, life, pension and investment products in the UK.

Moneyfactscompare.co.uk is the financial product price comparison site, launched as Moneyfacts.co.uk in 2000 and rebranded to Moneyfactscompare.co.uk in 2023, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfactscompare.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.

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

You are welcome to use part or all of this press release, so long as we are sufficiently sourced. We would appreciate a link back to Moneyfactscompare.co.uk.

Pioneering financial comparison technology for over 35 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, banking, life, pension and investment products in the UK.

Moneyfactscompare.co.uk is the financial product price comparison site, launched as Moneyfacts.co.uk in 2000 and rebranded to Moneyfactscompare.co.uk in 2023, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfactscompare.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.

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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©2026 Moneyfacts Group plc. All Rights Reserved. Use of this Website constitutes acceptance of the Company’s General Terms of Use & Privacy Policy. Moneyfacts Group plc is registered in England and Wales, company no. 4063110. Registered office: Moneyfacts House, 66-70 Thorpe Road, Norwich, NR1 1BJ. Moneyfacts, MONEY £ ACTS and INTEREST are Registered Trademarks.