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Inflation-beating savings rates flourish

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Rachel Springall, Press Officer
Rachel Springall, Press Officer / Finance Expert T: 01603 476210 E: Email Rachel
14/02/2024

Inflation-beating savings rates flourish

Savers will find an abundance of inflation-beating accounts after inflation remained unchanged. Moneyfactscompare.co.uk reveals the top rate deals available to those searching for a competitive return.

Inflation-beating savings rates flourish

Savers will find an abundance of inflation-beating accounts after inflation remained unchanged. Moneyfactscompare.co.uk reveals the top rate deals available to those searching for a competitive return.

  • The Consumer Price Index (CPI) remained at 4.0% during January, from 4.0% in December.
  • There are currently 953 savings accounts that beat inflation* (102 easy access, 119 notice accounts, 81 variable rate ISAs, 193 fixed rate ISAs and 458 fixed rate bonds).
  • The Bank of England’s modal projection rate for inflation during Q4 2024 is 2.7%.
  • In February 2023, there were no deals that could beat 10.1% (January 2023 CPI) and in February 2022, there were no deals that could beat 5.5% (January 2022 CPI).

 

  • The Consumer Price Index (CPI) remained at 4.0% during January, from 4.0% in December.
  • There are currently 953 savings accounts that beat inflation* (102 easy access, 119 notice accounts, 81 variable rate ISAs, 193 fixed rate ISAs and 458 fixed rate bonds).
  • The Bank of England’s modal projection rate for inflation during Q4 2024 is 2.7%.
  • In February 2023, there were no deals that could beat 10.1% (January 2023 CPI) and in February 2022, there were no deals that could beat 5.5% (January 2022 CPI).

 

Savings market analysis

Top savings deals at £10,000 gross

16-Feb-22

15-Feb-23

17-Jan-24

Today

Easy access account

Cynergy Bank – 0.71%

Paragon Bank – 3.10%

Ulster Bank – 5.20%

Ulster Bank – 5.20%

Notice account

Shawbrook Bank – 1.08% (120-day)

Furness BS – 3.50% (120-day)

FirstSave – 5.40% (90-day)

Vanquis Bank – 5.40% (90-day)

One-year fixed rate bond

Tandem Bank – 1.45%

Ahli United Bank (UK) plc (Raisin UK) – 4.20%

SmartSave – 5.31%

SmartSave – 5.21%

Two-year fixed rate bond

Al Rayan Bank – 1.66%**

Union Bank of India (UK) Ltd – 4.35%

Union Bank of India (UK) Ltd – 5.15%

iFAST Global Bank – 5.10%

Three-year fixed rate bond

UBL UK – 1.88% (payable on maturity)

UBL UK – 4.43% (payable on maturity)

Al Rayan Bank – 4.86%**

UBL UK – 4.72% (payable on maturity)

Four-year fixed rate bond

JN Bank – 1.95%

UBL UK – 4.53% (payable on maturity)

Bank of Ceylon (UK) Ltd (Raisin UK) – 4.55% (payable on maturity)

UBL UK – 4.54% (payable on maturity)

Five-year fixed rate bond

UBL UK – 2.19% (payable on maturity)

UBL UK – 4.63% (payable on maturity)

UBL UK – 4.64% (payable on maturity)

UBL UK – 4.77% (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

16-Feb-22

15-Feb-23

17-Jan-24

Today

Easy access account

Paragon Bank – 0.65%

Newcastle BS – 3.05%

Moneybox – 5.09% (includes bonus)

Moneybox – 5.09% (includes bonus)

Notice account

Aldermore – 0.55% (30-day)

Loughborough BS – 3.05% (120-day)

Chorley Building Society – 5.05% (150-day)

West Brom Building Society – 5.06% (60-day)

One-year fixed rate bond

Coventry BS – 1.05%

Virgin Money – 4.25%

Virgin Money – 5.25%

Virgin Money – 5.25%

Two-year fixed rate bond

UBL UK – 1.37% (payable on maturity)

Gatehouse Bank – 4.10%**

Close Brothers Savings – 4.75%

UBL UK – 4.72% (payable on maturity)

Three-year fixed rate bond

Coventry BS – 1.45%

UBL UK – 4.28% (payable on maturity)

UBL UK – 4.61% (payable on maturity)

UBL UK – 4.54% (payable on maturity)

Four-year fixed rate bond

UBL UK – 1.54% (payable on maturity)

UBL UK – 4.37% (payable on maturity)

UBL UK – 4.54% (payable on maturity)

UBL UK – 4.30% (payable on maturity)

Five-year fixed rate bond

UBL UK – 1.82% (payable on maturity)

UBL UK – 4.46% (payable on maturity)

UBL UK – 4.64% (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

16-Feb-22

15-Feb-23

17-Jan-24

Today

Easy access account

Cynergy Bank – 0.71%

Paragon Bank – 3.10%

Ulster Bank – 5.20%

Ulster Bank – 5.20%

Notice account

Shawbrook Bank – 1.08% (120-day)

Furness BS – 3.50% (120-day)

FirstSave – 5.40% (90-day)

Vanquis Bank – 5.40% (90-day)

One-year fixed rate bond

Tandem Bank – 1.45%

Ahli United Bank (UK) plc (Raisin UK) – 4.20%

SmartSave – 5.31%

SmartSave – 5.21%

Two-year fixed rate bond

Al Rayan Bank – 1.66%**

Union Bank of India (UK) Ltd – 4.35%

Union Bank of India (UK) Ltd – 5.15%

iFAST Global Bank – 5.10%

Three-year fixed rate bond

UBL UK – 1.88% (payable on maturity)

UBL UK – 4.43% (payable on maturity)

Al Rayan Bank – 4.86%**

UBL UK – 4.72% (payable on maturity)

Four-year fixed rate bond

JN Bank – 1.95%

UBL UK – 4.53% (payable on maturity)

Bank of Ceylon (UK) Ltd (Raisin UK) – 4.55% (payable on maturity)

UBL UK – 4.54% (payable on maturity)

Five-year fixed rate bond

UBL UK – 2.19% (payable on maturity)

UBL UK – 4.63% (payable on maturity)

UBL UK – 4.64% (payable on maturity)

UBL UK – 4.77% (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

16-Feb-22

15-Feb-23

17-Jan-24

Today

Easy access account

Paragon Bank – 0.65%

Newcastle BS – 3.05%

Moneybox – 5.09% (includes bonus)

Moneybox – 5.09% (includes bonus)

Notice account

Aldermore – 0.55% (30-day)

Loughborough BS – 3.05% (120-day)

Chorley Building Society – 5.05% (150-day)

West Brom Building Society – 5.06% (60-day)

One-year fixed rate bond

Coventry BS – 1.05%

Virgin Money – 4.25%

Virgin Money – 5.25%

Virgin Money – 5.25%

Two-year fixed rate bond

UBL UK – 1.37% (payable on maturity)

Gatehouse Bank – 4.10%**

Close Brothers Savings – 4.75%

UBL UK – 4.72% (payable on maturity)

Three-year fixed rate bond

Coventry BS – 1.45%

UBL UK – 4.28% (payable on maturity)

UBL UK – 4.61% (payable on maturity)

UBL UK – 4.54% (payable on maturity)

Four-year fixed rate bond

UBL UK – 1.54% (payable on maturity)

UBL UK – 4.37% (payable on maturity)

UBL UK – 4.54% (payable on maturity)

UBL UK – 4.30% (payable on maturity)

Five-year fixed rate bond

UBL UK – 1.82% (payable on maturity)

UBL UK – 4.46% (payable on maturity)

UBL UK – 4.64% (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

 

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

“Savers who prefer to lock their cash into a fixed rate bond or ISA for a guaranteed return will find more than half of the savings market can beat inflation, but they may be disappointed to see the top fixed rates have tumbled over the past month. Providers have been particularly active in this space due to the ongoing uncertainties surrounding future rate expectations. Challenger banks which sit towards the top end of the fixed bond market have had to adjust their market positions and will likely keep a close eye on their margins compared to their peers in the coming weeks.

“Those savers who prefer to have flexibility with their savings pots will find variable rates on the top easy access, notice accounts and ISA equivalents have been resilient. Indeed, it has been six months since the market last felt a base rate rise, and many providers have likely caught up with these rises by now, so any future improvements to the top rates will be down to competition. We would expect providers to improve their ISA rates this time of year, so savers need to consider using their ISA allowance as the new tax year in April fast approaches.

“There are many savings accounts for consumers to consider, but it remains the case that the convenience of putting cash in an easy access account with the biggest high street banks comes at a cost, as they pay much less than the top easy access accounts which pay around 5%. Savers would be wise to check the terms and conditions of any account carefully; can they access it quickly; does it penalise them for making more than one withdrawal in a year and do they need to note any introductory bonus? It is vital savers are conscious of any restrictions on their account and make sure they switch if it’s not working hard enough for them.

“Inflation is predicted to come down to around 2.7% by Q4 2024 and, based on today’s top rates, savers would be able to make a return on their cash on most savings accounts on the market should interest rates hover around current levels. Savers who have not reviewed their existing rate would be wise to do, as well as taking time to compare the latest deals on the market and sign up to rate alerts for any table-topping rates.”

*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.

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

“Savers who prefer to lock their cash into a fixed rate bond or ISA for a guaranteed return will find more than half of the savings market can beat inflation, but they may be disappointed to see the top fixed rates have tumbled over the past month. Providers have been particularly active in this space due to the ongoing uncertainties surrounding future rate expectations. Challenger banks which sit towards the top end of the fixed bond market have had to adjust their market positions and will likely keep a close eye on their margins compared to their peers in the coming weeks.

“Those savers who prefer to have flexibility with their savings pots will find variable rates on the top easy access, notice accounts and ISA equivalents have been resilient. Indeed, it has been six months since the market last felt a base rate rise, and many providers have likely caught up with these rises by now, so any future improvements to the top rates will be down to competition. We would expect providers to improve their ISA rates this time of year, so savers need to consider using their ISA allowance as the new tax year in April fast approaches.

“There are many savings accounts for consumers to consider, but it remains the case that the convenience of putting cash in an easy access account with the biggest high street banks comes at a cost, as they pay much less than the top easy access accounts which pay around 5%. Savers would be wise to check the terms and conditions of any account carefully; can they access it quickly; does it penalise them for making more than one withdrawal in a year and do they need to note any introductory bonus? It is vital savers are conscious of any restrictions on their account and make sure they switch if it’s not working hard enough for them.

“Inflation is predicted to come down to around 2.7% by Q4 2024 and, based on today’s top rates, savers would be able to make a return on their cash on most savings accounts on the market should interest rates hover around current levels. Savers who have not reviewed their existing rate would be wise to do, as well as taking time to compare the latest deals on the market and sign up to rate alerts for any table-topping rates.”

*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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James Hyde Press & PR Manager
Rachel Springall Press Officer / Finance Expert
Caitlyn Eastell Apprentice Press & PR Assistant