Savers pinched by base rate cuts and rigid inflation

Caitlyn Eastell, Apprentice Press & PR Assistant

Caitlyn Eastell, Press & PR Executive 01603 476169 Email Caitlyn

Savers pinched by base rate cuts and rigid inflation

Savers have been hit by rate cuts over the past year but some rates have edged upwards since last month’s inflation announcement. Moneyfactscompare.co.uk reveals the top rate deals available to those searching for a competitive return.

Savers pinched by base rate cuts and rigid inflation

The Consumer Price Index (CPI) fell to 3.4% during May, from 3.5% in April.
There are currently 1,437 savings accounts that beat inflation* (133 easy access, 122 notice accounts, 133 variable rate ISAs, 343 fixed rate ISAs and 706 fixed rate bonds).
The Bank of England’s modal projection rate for inflation during Q2 2026 is 2.4%.
In June 2024, there were 1,622 deals that could beat 2.0% (May 2024 CPI) and in June 2023, there were no deals that could beat 8.7% (May 2023).

The Consumer Price Index (CPI) fell to 3.4% during May, from 3.5% in April.
There are currently 1,437 savings accounts that beat inflation* (133 easy access, 122 notice accounts, 133 variable rate ISAs, 343 fixed rate ISAs and 706 fixed rate bonds).
The Bank of England’s modal projection rate for inflation during Q2 2026 is 2.4%.
In June 2024, there were 1,622 deals that could beat 2.0% (May 2024 CPI) and in June 2023, there were no deals that could beat 8.7% (May 2023).

Savings market analysis
Top savings deals at £10,000 gross	21-Jun-23	19-Jun-24	21-May-25	Today
Easy access account	Principality BS – 4.01%	Ulster Bank – 5.20%	Chip – 4.67% (includes bonus)	Chase – 4.89% (includes bonus)
Notice account	RCI Bank UK – 4.85% (95-day)	Vanquis Bank – 5.35% (90 day)	Vida Savings – 4.65% (95-Day)	GB Bank – 4.68% (120-Day)
One-year fixed rate bond	Ahli United Bank (UK) plc – 5.70%	Vanquis Bank – 5.21%	Castle Trust Bank – 4.44%	Cynergy Bank – 4.50% (payable on maturity)
Two-year fixed rate bond	Investec Bank plc (Raisin UK) – 5.60%	Vanquis Bank – 5.06%	Secure Trust Bank – 4.42%	JN Bank – 4.42%
Three-year fixed rate bond	Investec Bank plc (Raisin UK) – 6.00%	UBL UK – 4.85% (payable on maturity)	Birmingham Bank – 4.43% (payable on maturity)	JN Bank – 4.45%
Four-year fixed rate bond	RCI Bank UK – 5.55%	Isbank (Raisin UK) – 4.75%	UBL UK – 4.54% (payable on maturity)	UBL UK – 4.54% (payable on maturity)
Five-year fixed rate bond	RCI Bank UK – 5.55%	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	21-Jun-23	19-Jun-24	21-May-25	Today
Easy access ISA	Shawbrook Bank – 3.78%	Trading 212 – 5.07%	Moneybox – 5.71% (includes bonus)	Plum – 4.79% (includes bonus)
Notice ISA	Teachers BS – 4.00% (120-day)	West Brom BS – 5.10% (60-day)	Tipton & Coseley BS – 4.50% (60-day)	Tipton & Coseley BS – 4.25% (60 Day)
One-year fixed rate ISA	Virgin Money – 4.75%	Virgin Money – 5.05%	Virgin Money – 4.27%	Castle Trust Bank – 4.27%
Two-year fixed rate ISA	Virgin Money – 4.91%	United Trust Bank – 4.67%	UBL UK – 4.19% (payable on maturity)	United Trust Bank – 4.21%
Three-year fixed rate ISA	Virgin Money – 5.00%	Principality BS – 4.50%	Ford Money – 4.20%	UBL UK – 4.38% (payable on maturity)
Four-year fixed rate ISA	United Trust Bank – 4.85%	UBL UK – 4.30% (payable on maturity)	United Trust Bank – 4.00%	UBL UK – 4.25% (payable on maturity)
Five-year fixed rate ISA	United Trust Bank – 4.90%	UBL UK – 4.43% (payable on maturity)	UBL UK – 4.46% (payable on maturity)	UBL UK – 4.57% (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

Savings market analysis
Top savings deals at £10,000 gross	21-Jun-23	19-Jun-24	21-May-25	Today
Easy access account	Principality BS – 4.01%	Ulster Bank – 5.20%	Chip – 4.67% (includes bonus)	Chase – 4.89% (includes bonus)
Notice account	RCI Bank UK – 4.85% (95-day)	Vanquis Bank – 5.35% (90 day)	Vida Savings – 4.65% (95-Day)	GB Bank – 4.68% (120-Day)
One-year fixed rate bond	Ahli United Bank (UK) plc – 5.70%	Vanquis Bank – 5.21%	Castle Trust Bank – 4.44%	Cynergy Bank – 4.50% (payable on maturity)
Two-year fixed rate bond	Investec Bank plc (Raisin UK) – 5.60%	Vanquis Bank – 5.06%	Secure Trust Bank – 4.42%	JN Bank – 4.42%
Three-year fixed rate bond	Investec Bank plc (Raisin UK) – 6.00%	UBL UK – 4.85% (payable on maturity)	Birmingham Bank – 4.43% (payable on maturity)	JN Bank – 4.45%
Four-year fixed rate bond	RCI Bank UK – 5.55%	Isbank (Raisin UK) – 4.75%	UBL UK – 4.54% (payable on maturity)	UBL UK – 4.54% (payable on maturity)
Five-year fixed rate bond	RCI Bank UK – 5.55%	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	21-Jun-23	19-Jun-24	21-May-25	Today
Easy access ISA	Shawbrook Bank – 3.78%	Trading 212 – 5.07%	Moneybox – 5.71% (includes bonus)	Plum – 4.79% (includes bonus)
Notice ISA	Teachers BS – 4.00% (120-day)	West Brom BS – 5.10% (60-day)	Tipton & Coseley BS – 4.50% (60-day)	Tipton & Coseley BS – 4.25% (60 Day)
One-year fixed rate ISA	Virgin Money – 4.75%	Virgin Money – 5.05%	Virgin Money – 4.27%	Castle Trust Bank – 4.27%
Two-year fixed rate ISA	Virgin Money – 4.91%	United Trust Bank – 4.67%	UBL UK – 4.19% (payable on maturity)	United Trust Bank – 4.21%
Three-year fixed rate ISA	Virgin Money – 5.00%	Principality BS – 4.50%	Ford Money – 4.20%	UBL UK – 4.38% (payable on maturity)
Four-year fixed rate ISA	United Trust Bank – 4.85%	UBL UK – 4.30% (payable on maturity)	United Trust Bank – 4.00%	UBL UK – 4.25% (payable on maturity)
Five-year fixed rate ISA	United Trust Bank – 4.90%	UBL UK – 4.43% (payable on maturity)	UBL UK – 4.46% (payable on maturity)	UBL UK – 4.57% (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

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

“Inflation remains above the Government’s target of 2% and is eroding savers’ money in real terms. Since the previous inflation announcement, the best non-ISA deals have crept up slightly for variable and short-term fixed rates whereas the ISA market saw most fixed ISA rates rise. Challenger banks and app-based providers are rife among the top tables as competition continues to attract new customers. Consumers need to consistently search for the best accounts to avoid receiving a raw deal and act swiftly so they can grab the most popular deals before they are pulled or worsen.

“Savers continue to be hit by the handful of base rate cuts over the past year as all the top rates for non-ISAs have dropped compared to the market-leaders in June 2024, so those consumers with a variable account or only fixed for a year may now be feeling the pressure. With longer-term rates out-pacing short-term deals it may be a good time for savers to consider the benefits of locking away their cash for the next five years. Many of the top ISA rates have also been heading on a downward trajectory. Research from the Bank of England shows that £14 billion was invested in ISAs during April, the highest on its records, showing that there is still an appetite among savers to maintain the current ISA allowance. But many investors are still missing out on earning attractive returns as almost £300 billion is sitting in non-interest-bearing accounts.”

*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:

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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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.

Rachel Springall Press Officer / Finance Expert

01603 476210

Email Rachel

Caitlyn Eastell Press & PR Executive

01603 476169

Email Caitlyn

Savers pinched by base rate cuts and rigid inflation

Savers pinched by base rate cuts and rigid inflation

Savers pinched by base rate cuts and rigid inflation

Savers pinched by base rate cuts and rigid inflation

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