Inflation exceeds average rates for savers

Caitlyn Eastell, Apprentice Press & PR Assistant

Caitlyn Eastell, Press & PR Executive 01603 476169 Email Caitlyn

Inflation exceeds average rates for savers

Sticky inflation continues to erode the wealth of many as it exceeds the average return savers can earn, Moneyfactscompare.co.uk analysis can reveal.

Inflation exceeds average rates for savers

Sticky inflation continues to erode the wealth of many as it exceeds the average return savers can earn, Moneyfactscompare.co.uk analysis can reveal.

The Consumer Price Index (CPI) rose to 3.6% during June, from 3.4% in May.
The Bank of England’s modal projection rate for inflation during Q2 2026 is 2.4%.
There are currently 1,289 savings accounts that beat inflation* (119 easy access, 115 notice accounts, 107 variable rate ISAs, 312 fixed rate ISAs and 636 fixed rate bonds).
However, the Moneyfacts Average Savings Rate currently sits at 3.51%, which is lower than inflation, so it is essential that savers shop around to avoid losing money in real terms.
In July 2024, there were 1,638 deals that could beat 2.0% (June 2024 CPI) and in July 2023, there were no deals that could beat 7.9% (June 2023).

The Consumer Price Index (CPI) rose to 3.6% during June, from 3.4% in May.
The Bank of England’s modal projection rate for inflation during Q2 2026 is 2.4%.
There are currently 1,289 savings accounts that beat inflation* (119 easy access, 115 notice accounts, 107 variable rate ISAs, 312 fixed rate ISAs and 636 fixed rate bonds).
However, the Moneyfacts Average Savings Rate currently sits at 3.51%, which is lower than inflation, so it is essential that savers shop around to avoid losing money in real terms.
In July 2024, there were 1,638 deals that could beat 2.0% (June 2024 CPI) and in July 2023, there were no deals that could beat 7.9% (June 2023).

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

“Today’s inflation figures come as bad news to savers as it now exceeds the average return they can expect on their savings, and many must now act quickly to avoid inflation eroding their hard-earned wealth by moving their money to the most competitive accounts. It is essential savers earning less than the level of inflation shop around for better returns immediately.

“Some of the best-paying accounts which include easy access and fixed term accounts pay over 4%, plus the best regular savings accounts, into which you can save smaller amounts each month, are paying around 7%. However, today’s best rates shouldn’t be taken for granted. While many top paying rates have improved in the past month, it may be a short-term reprieve - there has also been a harsh cut of almost 1% when looking back at one-year fixed rate bonds this time last year.

“For now, the gap between the best variable, short-term and long-term rates is on a knife edge, but it could change quickly. Some of the best returns can currently be found with easy access accounts, but these rates are variable, and they are liable to be cut if the Bank of England lowers rates, as expected later this year.”

Savings market analysis
Top savings deals at £10,000 gross	19-Jul-23	17-Jul-24	18-Jun-25	Today
Easy access account	DF Capital – 4.55%	Ulster Bank – 5.20%	Chase – 4.89% (includes bonus)	Chase – 4.89% (includes bonus)
Notice account	BLME – 5.15% (90-day)	Vanquis Bank – 5.35% (90 day)	GB Bank – 4.68% (120-Day)	RCI Bank UK – 4.70% (95-Day)
One-year fixed rate bond	Vanquis Bank – 6.15%	Union Bank of India (UK) Ltd – 5.40%	Cynergy Bank – 4.50% (payable on maturity)	GB Bank – 4.58% (payable on maturity)
Two-year fixed rate bond	Investec Bank plc (Raisin UK) – 6.24%	Isbank (Raisin UK) – 5.13%	JN Bank – 4.42%	DF Capital – 4.44%
Three-year fixed rate bond	Investec Bank plc (Raisin UK) – 6.44%	UBL UK – 4.85% (payable on maturity)	JN Bank – 4.45%	DF Capital – 4.43%
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 – 4.95% (payable on maturity)	UBL UK – 4.64% (payable on maturity)	UBL UK – 4.64% (payable on maturity)
**Islamic bank, pays an expected profit rate. 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-Jul-23	17-Jul-24	18-Jun-25	Today
Easy access ISA	Principality BS – 4.20%	Trading 212 – 5.07%	Plum – 4.79% (includes bonus)	Plum – 4.92% (includes bonus)
Notice ISA	Marsden BS – 4.45% (180-day)	West Brom BS – 5.10% (60-day)	Tipton & Coseley BS – 4.25% (60 Day)	The Stafford BS – 4.35% (60 Day)
One-year fixed rate ISA	NatWest – 5.70%	Virgin Money – 5.05%	Castle Trust Bank – 4.27%	Vanquis Bank – 4.30%
Two-year fixed rate ISA	NatWest – 5.90%	Beehive Money – 4.70%	United Trust Bank – 4.21%	Vanquis Bank – 4.23%
Three-year fixed rate ISA	Virgin Money – 5.55%	Principality BS – 4.60%	UBL UK – 4.38% (payable on maturity)	UBL UK – 4.40% (payable on maturity)
Four-year fixed rate ISA	United Trust Bank – 5.15%	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 – 4.43% (payable on maturity)	UBL UK – 4.57% (payable on maturity)	UBL UK – 4.59% (payable on maturity)
**Islamic bank, pays an expected profit rate. 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:

Savings market analysis
Top savings deals at £10,000 gross	19-Jul-23	17-Jul-24	18-Jun-25	Today
Easy access account	DF Capital – 4.55%	Ulster Bank – 5.20%	Chase – 4.89% (includes bonus)	Chase – 4.89% (includes bonus)
Notice account	BLME – 5.15% (90-day)	Vanquis Bank – 5.35% (90 day)	GB Bank – 4.68% (120-Day)	RCI Bank UK – 4.70% (95-Day)
One-year fixed rate bond	Vanquis Bank – 6.15%	Union Bank of India (UK) Ltd – 5.40%	Cynergy Bank – 4.50% (payable on maturity)	GB Bank – 4.58% (payable on maturity)
Two-year fixed rate bond	Investec Bank plc (Raisin UK) – 6.24%	Isbank (Raisin UK) – 5.13%	JN Bank – 4.42%	DF Capital – 4.44%
Three-year fixed rate bond	Investec Bank plc (Raisin UK) – 6.44%	UBL UK – 4.85% (payable on maturity)	JN Bank – 4.45%	DF Capital – 4.43%
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 – 4.95% (payable on maturity)	UBL UK – 4.64% (payable on maturity)	UBL UK – 4.64% (payable on maturity)
**Islamic bank, pays an expected profit rate. 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-Jul-23	17-Jul-24	18-Jun-25	Today
Easy access ISA	Principality BS – 4.20%	Trading 212 – 5.07%	Plum – 4.79% (includes bonus)	Plum – 4.92% (includes bonus)
Notice ISA	Marsden BS – 4.45% (180-day)	West Brom BS – 5.10% (60-day)	Tipton & Coseley BS – 4.25% (60 Day)	The Stafford BS – 4.35% (60 Day)
One-year fixed rate ISA	NatWest – 5.70%	Virgin Money – 5.05%	Castle Trust Bank – 4.27%	Vanquis Bank – 4.30%
Two-year fixed rate ISA	NatWest – 5.90%	Beehive Money – 4.70%	United Trust Bank – 4.21%	Vanquis Bank – 4.23%
Three-year fixed rate ISA	Virgin Money – 5.55%	Principality BS – 4.60%	UBL UK – 4.38% (payable on maturity)	UBL UK – 4.40% (payable on maturity)
Four-year fixed rate ISA	United Trust Bank – 5.15%	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 – 4.43% (payable on maturity)	UBL UK – 4.57% (payable on maturity)	UBL UK – 4.59% (payable on maturity)
**Islamic bank, pays an expected profit rate. 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.

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.

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

Email Rachel

Caitlyn Eastell Press & PR Executive