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Four in five savings accounts now beat inflation

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Moneyfacts Press Team, Press Office 01603 476200 Email Press Office
20/03/2024

Four in five savings accounts now beat inflation

A fall to the Consumer Price Index (CPI) means the vast majority of savings deals now beat inflation. Moneyfactscompare.co.uk reveals the top rate deals available to savers searching for a competitive return.

Four in five savings accounts now beat inflation

A fall to the Consumer Price Index (CPI) means the vast majority of savings deals now beat inflation. Moneyfactscompare.co.uk reveals the top rate deals available to savers searching for a competitive return.

  • The Consumer Price Index (CPI) fell to 3.4% during February, from 4.0% in January.
  • There are currently 1,365 savings accounts that beat inflation* (151 easy access, 142 notice accounts, 152 variable rate ISAs, 298 fixed rate ISAs and 622 fixed rate bonds).
  • The Bank of England’s modal projection rate for inflation during Q1 2025 is 2.8%.
  • In March 2023, there were no deals that could beat 10.4% (February 2023 CPI) and in March 2022, there were no deals that could beat 6.2% (February 2022 CPI).

 

  • The Consumer Price Index (CPI) fell to 3.4% during February, from 4.0% in January.
  • There are currently 1,365 savings accounts that beat inflation* (151 easy access, 142 notice accounts, 152 variable rate ISAs, 298 fixed rate ISAs and 622 fixed rate bonds).
  • The Bank of England’s modal projection rate for inflation during Q1 2025 is 2.8%.
  • In March 2023, there were no deals that could beat 10.4% (February 2023 CPI) and in March 2022, there were no deals that could beat 6.2% (February 2022 CPI).

 

Savings market analysis

Top savings deals at £10,000 gross

23-Mar-22

22-Mar-23

14-Feb-24

Today

Easy access account

Virgin Money – 1.00%

Chip – 3.35%

Ulster Bank – 5.20%

Ulster Bank – 5.20%

Notice account

Shawbrook Bank – 1.15% (120-day)

Melton BS – 3.50% (180-day)

Vanquis Bank – 5.40% (90-day)

Hinckley & Rugby BS – 5.25% (180-day)

One-year fixed rate bond

Al Rayan Bank – 1.70%**

Al Rayan Bank – 4.43%**

SmartSave – 5.21%

MBNA – 5.27%

Two-year fixed rate bond

JN Bank – 1.96%

Al Rayan Bank – 4.55%**

iFAST Global Bank – 5.10%

Oxbury Bank – 5.11%

Three-year fixed rate bond

JN Bank – 2.11%

Al Rayan Bank – 4.60%**

UBL UK – 4.72% (payable on maturity)

UBL UK – 4.85% (payable on maturity)

Four-year fixed rate bond

PCF Bank – 2.15%

UBL UK – 4.53% (payable on maturity)

UBL UK – 4.54% (payable on maturity)

UBL UK – 4.54% (payable on maturity)

Five-year fixed rate bond

PCF Bank – 2.30%

UBL UK – 4.63% (payable on maturity)

UBL UK – 4.77% (payable on maturity)

UBL UK – 4.95% (payable on maturity)

**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

23-Mar-22

22-Mar-23

14-Feb-24

Today

Easy access ISA

Paragon Bank – 0.80%

Cynergy Bank – 3.20%

Moneybox – 5.09% (includes bonus)

Moneybox – 5.11% (includes bonus)

Notice ISA

Buckinghamshire BS – 0.60% (30-day)

Furness BS – 3.30% (45-day)

West Brom  BS – 5.06% (60-day)

West Brom BS – 5.10% (60-day)

One-year fixed rate ISA

OakNorth Bank – 1.28%

Santander – 4.15%

Virgin Money – 5.25%

Virgin Money – 5.25%

Two-year fixed rate ISA

UBL UK – 1.61% (payable on maturity)

Santander – 4.20%

UBL UK – 4.72% (payable on maturity)

UBL UK – 4.81% (payable on maturity)

Three-year fixed rate ISA

UBL UK – 1.73% (payable on maturity)

UBL UK – 4.28% (payable on maturity)

UBL UK – 4.54% (payable on maturity)

UBL UK – 4.59% (payable on maturity)

Four-year fixed rate ISA

UBL UK – 1.74% (payable on maturity)

UBL UK – 4.37% (payable on maturity)

UBL UK – 4.30% (payable on maturity)

UBL UK – 4.30% (payable on maturity)

Five-year fixed rate ISA

UBL UK – 1.93% (payable on maturity)

UBL UK – 4.33% (payable on maturity)

UBL UK – 4.52% (payable on maturity)

UBL UK – 4.52% (payable on maturity)

**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

 

Savings market analysis

Top savings deals at £10,000 gross

23-Mar-22

22-Mar-23

14-Feb-24

Today

Easy access account

Virgin Money – 1.00%

Chip – 3.35%

Ulster Bank – 5.20%

Ulster Bank – 5.20%

Notice account

Shawbrook Bank – 1.15% (120-day)

Melton BS – 3.50% (180-day)

Vanquis Bank – 5.40% (90-day)

Hinckley & Rugby BS – 5.25% (180-day)

One-year fixed rate bond

Al Rayan Bank – 1.70%**

Al Rayan Bank – 4.43%**

SmartSave – 5.21%

MBNA – 5.27%

Two-year fixed rate bond

JN Bank – 1.96%

Al Rayan Bank – 4.55%**

iFAST Global Bank – 5.10%

Oxbury Bank – 5.11%

Three-year fixed rate bond

JN Bank – 2.11%

Al Rayan Bank – 4.60%**

UBL UK – 4.72% (payable on maturity)

UBL UK – 4.85% (payable on maturity)

Four-year fixed rate bond

PCF Bank – 2.15%

UBL UK – 4.53% (payable on maturity)

UBL UK – 4.54% (payable on maturity)

UBL UK – 4.54% (payable on maturity)

Five-year fixed rate bond

PCF Bank – 2.30%

UBL UK – 4.63% (payable on maturity)

UBL UK – 4.77% (payable on maturity)

UBL UK – 4.95% (payable on maturity)

**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

23-Mar-22

22-Mar-23

14-Feb-24

Today

Easy access ISA

Paragon Bank – 0.80%

Cynergy Bank – 3.20%

Moneybox – 5.09% (includes bonus)

Moneybox – 5.11% (includes bonus)

Notice ISA

Buckinghamshire BS – 0.60% (30-day)

Furness BS – 3.30% (45-day)

West Brom  BS – 5.06% (60-day)

West Brom BS – 5.10% (60-day)

One-year fixed rate ISA

OakNorth Bank – 1.28%

Santander – 4.15%

Virgin Money – 5.25%

Virgin Money – 5.25%

Two-year fixed rate ISA

UBL UK – 1.61% (payable on maturity)

Santander – 4.20%

UBL UK – 4.72% (payable on maturity)

UBL UK – 4.81% (payable on maturity)

Three-year fixed rate ISA

UBL UK – 1.73% (payable on maturity)

UBL UK – 4.28% (payable on maturity)

UBL UK – 4.54% (payable on maturity)

UBL UK – 4.59% (payable on maturity)

Four-year fixed rate ISA

UBL UK – 1.74% (payable on maturity)

UBL UK – 4.37% (payable on maturity)

UBL UK – 4.30% (payable on maturity)

UBL UK – 4.30% (payable on maturity)

Five-year fixed rate ISA

UBL UK – 1.93% (payable on maturity)

UBL UK – 4.33% (payable on maturity)

UBL UK – 4.52% (payable on maturity)

UBL UK – 4.52% (payable on maturity)

**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

 

James Hyde, Spokesperson at Moneyfactscompare.co.uk, said:

“This fall in CPI means that 80% of standard savings accounts currently beat inflation, a far cry from this time last year when none were able to do that.

“Some top fixed rates have decreased slightly over the past month, though activity in the market has been mixed recently - with some providers raising their interest paid in recent weeks.

“Top variable rates across savings accounts and ISAs continue to hold very steady as they have in recent months, though any potential reduction in base rate may precipitate more movement in this area of the market.

“It remains the case, despite the Financial Conduct Authority’s continued focus on Consumer Duty, that big banks are still failing to offer variable rates which are competitive with the rest of the market. However, it’s always wise to check the terms and conditions of all accounts regardless of their headline rate, as some may have restricted accessibility or availability.

“The new tax-year in April is less than a fortnight away, and savers who wish to utilise their full ISA allowance now have limited time to do so. Providers would traditionally improve their ISA rates, as competition for last-minute investment intensifies.

“The Bank of England’s projection is that inflation will sit at around 2.8% by Q1 2025, which should allow consumers plenty of options to see real term returns on their cash savings. It remains crucial, as ever, that savers consider all options available to them, and are prepared to switch if they could be better served elsewhere.”

*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, JISAs and LISAs, based on a £10,000 deposit, gross rates. Higher rates may be available for other levels of deposit.

James Hyde, Spokesperson at Moneyfactscompare.co.uk, said:

“This fall in CPI means that 80% of standard savings accounts currently beat inflation, a far cry from this time last year when none were able to do that.

“Some top fixed rates have decreased slightly over the past month, though activity in the market has been mixed recently - with some providers raising their interest paid in recent weeks.

“Top variable rates across savings accounts and ISAs continue to hold very steady as they have in recent months, though any potential reduction in base rate may precipitate more movement in this area of the market.

“It remains the case, despite the Financial Conduct Authority’s continued focus on Consumer Duty, that big banks are still failing to offer variable rates which are competitive with the rest of the market. However, it’s always wise to check the terms and conditions of all accounts regardless of their headline rate, as some may have restricted accessibility or availability.

“The new tax-year in April is less than a fortnight away, and savers who wish to utilise their full ISA allowance now have limited time to do so. Providers would traditionally improve their ISA rates, as competition for last-minute investment intensifies.

“The Bank of England’s projection is that inflation will sit at around 2.8% by Q1 2025, which should allow consumers plenty of options to see real term returns on their cash savings. It remains crucial, as ever, that savers consider all options available to them, and are prepared to switch if they could be better served elsewhere.”

*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, JISAs and LISAs, based on a £10,000 deposit, gross rates. Higher rates may be available for other levels of deposit.

Notes to editors

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, business 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.

We hope you find this press release insightful. We would appreciate a link back to Moneyfactscompare.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 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, business 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.

We hope you find this press release insightful. We would appreciate a link back to Moneyfactscompare.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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