Savings

• The Consumer Price Index (CPI) remained at 3.0% during February, from 3.0% in January. The Bank of England’s projection rate for inflation during Q1 2027 is 1.7%.
• The Moneyfacts Average Savings Rate currently sits at 3.39%, 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 1,679 savings accounts that beat inflation* (169 easy access, 148 notice accounts, 146 variable rate ISAs, 406 fixed rate ISAs and 810 fixed rate bonds).
• In March 2025, there were 1,575 deals that could beat CPI which was then at 2.8% (February 2025 CPI) and in March 2024, there were 1,365 deals that could beat CPI which was at 3.4% (February 2024 CPI).

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

“At the beginning of the year, inflation was expected to cool to its 2% target from April. However, ongoing conflict in the Middle East threatens to bring that progress to a screeching halt, potentially keeping prices higher for longer. It’s a double-edged sword; stubborn inflation could slam the brakes on rate cuts, or even prompt hikes, which could deliver short-term boosts to savings returns. This relief is short-lived, if inflation stays elevated, it will quickly erode ‘real’ returns and chip away at the true value of savers’ cash. For example, savers with £10,000 earning the Moneyfacts Average Savings Rate of 3.37% would earn £339 in interest over a year, but if inflation rose to around 4%, the real value of their original investment would effectively fall by around £61. Settling for average won’t cut it, savers should be hunting down the most competitive rates. The top easy access account currently pays 4.71%, which puts savers ahead, pocketing a real return of roughly £71 even after inflation takes a cut.

“With the tax-year end fast approaching, savers should now be taking a ‘use it or lose it’ approach for any remaining cash ISA allowances because any unused portion can’t be carried forward beyond the deadline. Savers may also be feeling the pressure to choose an ISA for the 2026/27 year, but providers will be continuing to compete for investors’ new cash for weeks after the deadline, meaning its worth tracking the top returns beyond April. The upcoming tax-year also marks the final year for those under 65 to use their full £20,000 cash ISA allowance, which could be crucial for competition. Additionally, from April 2027, ISA transfer rules are tightening, with the key change being that savers will no longer be able to transfer money from a stocks and shares ISA into a cash ISA, which reduces flexibility. Anyone seeking to reduce their risk or take advantage of higher rates will need to plan ahead, as withdrawing funds from an investment ISA could forfeit their tax-free benefits.”

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.