Fewer than half of savings accounts can beat inflation

Caitlyn Eastell, Apprentice Press & PR Assistant

Caitlyn Eastell, Press & PR Executive 01603 476169 Email Caitlyn

Fewer than half of available savings accounts can beat inflation

High inflation means savers have fewer accounts to choose from and risk missing out on real returns, Moneyfactscompare.co.uk analysis can reveal.

Fewer than half of available savings accounts can beat inflation

High inflation means savers have fewer accounts to choose from and risk missing out on real returns, Moneyfactscompare.co.uk analysis can reveal.

The Consumer Price Index (CPI) rose to 3.8% during July, from 3.6% in June. The Bank of England’s projection rate for inflation during Q3 2026 is 2.7%.
However, the Moneyfacts Average Savings Rate currently sits at 3.47%, which is lower than inflation, so it is essential that savers shop around to avoid losing money in real terms.
Fewer than half of available accounts (956 out of 2004) on the savings market are paying above a rate of inflation.
There are currently 956 savings accounts that beat inflation* (85 easy access, 86 notice accounts, 79 variable rate ISAs, 210 fixed rate ISAs and 496 fixed rate bonds).
There are now 333 fewer savings accounts that can beat CPI at 3.8% (July 2025) compared to August 2024, when there were 1,558 deals that could beat CPI which was then at 2.2% (July 2024). In August 2023, there were no deals that could beat CPI which was at 6.8% (July 2023).

The Consumer Price Index (CPI) rose to 3.8% during July, from 3.6% in June. The Bank of England’s projection rate for inflation during Q3 2026 is 2.7%.
However, the Moneyfacts Average Savings Rate currently sits at 3.47%, which is lower than inflation, so it is essential that savers shop around to avoid losing money in real terms.
Fewer than half of available accounts (956 out of 2004) on the savings market are paying above a rate of inflation.
There are currently 956 savings accounts that beat inflation* (85 easy access, 86 notice accounts, 79 variable rate ISAs, 210 fixed rate ISAs and 496 fixed rate bonds).
There are now 333 fewer savings accounts that can beat CPI at 3.8% (July 2025) compared to August 2024, when there were 1,558 deals that could beat CPI which was then at 2.2% (July 2024). In August 2023, there were no deals that could beat CPI which was at 6.8% (July 2023).

Caitlyn Eastell, Spokesperson at Moneyfactscompare.co.uk, said:

“After almost a year and a half of savings growth, many savers are slipping back into earning negative real returns as inflation figures jump again. The Moneyfacts Average Savings Rate currently sits at 3.47%, lower than the latest CPI reading of 3.8%. Adding insult to injury, there are also hundreds fewer inflation-beating deals available compared to 12 months ago.

“With inflation running higher than the interest savings earn, money left languishing in a low-interest account is losing its spending power – making it tougher to achieve a sense of financial resilience or save towards goals such as a car, house or comfortable retirement. This comes hot on the heels of the latest base rate reduction which had an almost instantaneous effect, with over a dozen savings account providers cutting variable rates within 24 hours and many more likely to tumble in the coming weeks.

“It is crucial savers review their current deal and if they are earning less than 3.8% to immediately search for a better deal.”

Savings market analysis
Top savings deals at £10,000 gross	16-Aug-23	14-Aug-24	16-Jul-25	Today
Easy access account	Cynergy Bank – 4.80%	Ulster Bank – 5.20%	Chase – 4.89% (includes bonus)	Chip – 4.74% (includes bonus)
Notice account	Cynergy Bank – 5.45% (120-day)	Hinckley & Rugby BS– 5.25% (180 day)	RCI Bank UK – 4.70% (95-Day)	The Stafford BS – 4.61% (180-Day)
One-year fixed rate bond	OakNorth Bank – 6.02%	Union Bank of India (UK) Ltd – 5.25%	GB Bank – 4.58% (payable on maturity)	JN Bank – 4.43%
Two-year fixed rate bond	Recognise Bank – 6.10%	Ziraat Bank (Raisin UK) – 4.90%	DF Capital – 4.44%	JN Bank – 4.45%
Three-year fixed rate bond	Recognise Bank – 6.05%	UBL UK – 4.85% (payable on maturity)	DF Capital – 4.43%	JN Bank – 4.45%
Four-year fixed rate bond	Hampshire Trust Bank – 5.85%	UBL UK – 4.54% (payable on maturity)	UBL UK – 4.54% (payable on maturity)	UBL UK – 4.54% (payable on maturity)
Five-year fixed rate bond	RCI Bank UK – 5.80%	UBL UK – 4.64% (payable on maturity)	UBL UK – 4.64% (payable on maturity)	UBL UK – 4.64% (payable on maturity)
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	16-Aug-23	14-Aug-24	16-Jul-25	Today
Easy access ISA	Shawbrook Bank – 4.43%	Trading 212 – 5.07%	Plum – 4.92% (includes bonus)	Chip – 4.60% (includes bonus)
Notice ISA	Loughborough BS – 4.75% (120-day)	Teachers BS – 4.85% (120-day)	The Stafford BS – 4.35% (60 Day)	The Stafford BS – 4.35% (60 Day)
One-year fixed rate ISA	UBL UK – 5.77% (payable on maturity)	Virgin Money – 5.05%	Vanquis Bank – 4.30%	Vida Savings – 4.31%
Two-year fixed rate ISA	Charter Savings Bank – 5.73%	UBL UK – 4.82% (payable on maturity)	Vanquis Bank – 4.23%	Shawbrook Bank – 4.21%
Three-year fixed rate ISA	Hodge Bank – 5.55%	UBL UK – 4.72% (payable on maturity)	UBL UK – 4.40% (payable on maturity)	UBL UK – 4.37% (payable on maturity)
Four-year fixed rate ISA	United Trust Bank – 5.25%	UBL UK – 4.30% (payable on maturity)	UBL UK – 4.25% (payable on maturity)	UBL UK – 4.25% (payable on maturity)
Five-year fixed rate ISA	UBL UK – 5.54% (payable on maturity)	UBL UK – 4.64% (payable on maturity)	UBL UK – 4.59% (payable on maturity)	UBL UK – 4.59% (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.

Caitlyn Eastell, Spokesperson at Moneyfactscompare.co.uk, said:

“It is crucial savers review their current deal and if they are earning less than 3.8% to immediately search for a better deal.”

Savings market analysis
Top savings deals at £10,000 gross	16-Aug-23	14-Aug-24	16-Jul-25	Today
Easy access account	Cynergy Bank – 4.80%	Ulster Bank – 5.20%	Chase – 4.89% (includes bonus)	Chip – 4.74% (includes bonus)
Notice account	Cynergy Bank – 5.45% (120-day)	Hinckley & Rugby BS– 5.25% (180 day)	RCI Bank UK – 4.70% (95-Day)	The Stafford BS – 4.61% (180-Day)
One-year fixed rate bond	OakNorth Bank – 6.02%	Union Bank of India (UK) Ltd – 5.25%	GB Bank – 4.58% (payable on maturity)	JN Bank – 4.43%
Two-year fixed rate bond	Recognise Bank – 6.10%	Ziraat Bank (Raisin UK) – 4.90%	DF Capital – 4.44%	JN Bank – 4.45%
Three-year fixed rate bond	Recognise Bank – 6.05%	UBL UK – 4.85% (payable on maturity)	DF Capital – 4.43%	JN Bank – 4.45%
Four-year fixed rate bond	Hampshire Trust Bank – 5.85%	UBL UK – 4.54% (payable on maturity)	UBL UK – 4.54% (payable on maturity)	UBL UK – 4.54% (payable on maturity)
Five-year fixed rate bond	RCI Bank UK – 5.80%	UBL UK – 4.64% (payable on maturity)	UBL UK – 4.64% (payable on maturity)	UBL UK – 4.64% (payable on maturity)
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	16-Aug-23	14-Aug-24	16-Jul-25	Today
Easy access ISA	Shawbrook Bank – 4.43%	Trading 212 – 5.07%	Plum – 4.92% (includes bonus)	Chip – 4.60% (includes bonus)
Notice ISA	Loughborough BS – 4.75% (120-day)	Teachers BS – 4.85% (120-day)	The Stafford BS – 4.35% (60 Day)	The Stafford BS – 4.35% (60 Day)
One-year fixed rate ISA	UBL UK – 5.77% (payable on maturity)	Virgin Money – 5.05%	Vanquis Bank – 4.30%	Vida Savings – 4.31%
Two-year fixed rate ISA	Charter Savings Bank – 5.73%	UBL UK – 4.82% (payable on maturity)	Vanquis Bank – 4.23%	Shawbrook Bank – 4.21%
Three-year fixed rate ISA	Hodge Bank – 5.55%	UBL UK – 4.72% (payable on maturity)	UBL UK – 4.40% (payable on maturity)	UBL UK – 4.37% (payable on maturity)
Four-year fixed rate ISA	United Trust Bank – 5.25%	UBL UK – 4.30% (payable on maturity)	UBL UK – 4.25% (payable on maturity)	UBL UK – 4.25% (payable on maturity)
Five-year fixed rate ISA	UBL UK – 5.54% (payable on maturity)	UBL UK – 4.64% (payable on maturity)	UBL UK – 4.59% (payable on maturity)	UBL UK – 4.59% (payable on maturity)
Inflation announcement dates. Top rates exclude deals with restrictive criteria. Notice ISAs exclude those over 180 days. Source: Moneyfactscompare.co.uk

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.

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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.

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

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.

If you're looking for extra comment, a chart or more information, then please give us a call. We are always more than happy to help.

Adam French Head of News & Communications

01603 476154

Email Adam

Rachel Springall Press Officer / Finance Expert

01603 476210

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Caitlyn Eastell Press & PR Executive