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Top fixed savings rates cut and inflation eases

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James Hyde, Press & PR Manager
James Hyde, Press & PR Manager T: 01603 476205 E: Email James
17/01/2024

Top fixed savings rates cut and inflation eases

Some top fixed bond rates have reduced since the last inflation announcement, reaffirming the need for savers to act quickly. Moneyfactscompare.co.uk reveals the top rate deals available to those searching for a competitive return.

Top fixed savings rates cut and inflation eases

Some top fixed bond rates have reduced since the last inflation announcement, reaffirming the need for savers to act quickly. Moneyfactscompare.co.uk reveals the top rate deals available to those searching for a competitive return.

  • The Consumer Price Index (CPI) rose to 4% during December, from 3.9% in November.
  • There are currently 967 savings accounts that beat inflation* (101 easy access, 124 notice accounts, 72 variable rate ISAs, 207 fixed rate ISAs and 463 fixed rate bonds).
  • The Bank of England’s modal projection rate for inflation during Q4 2024 is 3.1%.
  • In January 2023, there were no deals that could beat 10.5% (December 2022 CPI) and in January 2022, there were no deals that could beat 5.4% (December 2021 CPI).

 

  • The Consumer Price Index (CPI) rose to 4% during December, from 3.9% in November.
  • There are currently 967 savings accounts that beat inflation* (101 easy access, 124 notice accounts, 72 variable rate ISAs, 207 fixed rate ISAs and 463 fixed rate bonds).
  • The Bank of England’s modal projection rate for inflation during Q4 2024 is 3.1%.
  • In January 2023, there were no deals that could beat 10.5% (December 2022 CPI) and in January 2022, there were no deals that could beat 5.4% (December 2021 CPI).

 

Savings market analysis

Top savings deals at £10,000 gross

19-Jan-22

18-Jan-23

20-Dec-23

Today

Easy access account

Family Building Society – 0.72%

HSBC – 2.96%

Ulster Bank – 5.20%

Ulster Bank – 5.20%

Notice account

Shawbrook Bank – 1.08% (120-day)

Hinckley & Rugby BS – 3.60% (120-day)

Hampshire Trust Bank – 5.51% (95-day)

FirstSave – 5.40% (90-Day)

One-year fixed rate bond

Investec Bank plc – 1.36%

Habib Bank Zurich plc – 4.33%

Metro Bank – 5.66%

SmartSave – 5.31%

Two-year fixed rate bond

Charter Savings Bank – 1.62%

FirstSave – 4.70%

Union Bank of India (UK) Ltd –5.40%

Union Bank of India (UK) Ltd – 5.15%

Three-year fixed rate bond

Zenith Bank – 1.85%

Investec Bank plc (Raisin UK) – 4.71% (payable on maturity)

Hanley Economic BS –5.35%

Al-Rayan Bank – 4.86%**

Four-year fixed rate bond

Gatehouse Bank – 1.92%**

UBL UK – 4.53% (payable on maturity)

UBL UK – 4.93% (payable on maturity)

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

Five-year fixed rate bond

UBL UK – 2.14% (payable on maturity)

UBL UK – 4.63% (payable on maturity)

UBL UK – 5.30% (payable on maturity)

 UBL UK – 4.64% (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

19-Jan-22

18-Jan-23

20-Dec-23

Today

Easy access ISA

Shawbrook Bank – 0.67%

Virgin Money – 3.00%

Metro Bank – 5.11%

Moneybox – 5.09% (includes bonus)

Notice ISA

Aldermore – 0.55% (30-day)

Mansfield BS – 3.00% (180-day)

Mansfield BS – 5.30% (180-day)

 Chorley Building Society – 5.05% (150-day)

One-year fixed rate ISA

Coventry BS – 1.00%

Barclays Bank – 4.00%

 Metro Bank – 5.41%

Virgin Money – 5.25%

Two-year fixed rate ISA

Newcastle BS – 1.30%

Virgin Money – 4.11%

UBL UK – 5.13% (payable on maturity)

 Close Brothers Savings – 4.75%

Three-year fixed rate ISA

UBL UK – 1.43% (payable on maturity)

UBL UK – 4.43% (payable on maturity)

UBL UK – 5.11% (payable on maturity)

 UBL UK – 4.61% (payable on maturity)

Four-year fixed rate ISA

UBL UK – 1.54% (payable on maturity)

Gatehouse Bank – 4.20%**

UBL UK – 4.93% (payable on maturity)

UBL UK – 4.54% (payable on maturity)

Five-year fixed rate ISA

UBL UK – 1.82% (payable on maturity)

Hinckley & Rugby BS – 4.25%

UBL UK – 5.30% (payable on maturity)

UBL UK – 4.64% (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

19-Jan-22

18-Jan-23

20-Dec-23

Today

Easy access account

Family Building Society – 0.72%

HSBC – 2.96%

Ulster Bank – 5.20%

Ulster Bank – 5.20%

Notice account

Shawbrook Bank – 1.08% (120-day)

Hinckley & Rugby BS – 3.60% (120-day)

Hampshire Trust Bank – 5.51% (95-day)

FirstSave – 5.40% (90-Day)

One-year fixed rate bond

Investec Bank plc – 1.36%

Habib Bank Zurich plc – 4.33%

Metro Bank – 5.66%

SmartSave – 5.31%

Two-year fixed rate bond

Charter Savings Bank – 1.62%

FirstSave – 4.70%

Union Bank of India (UK) Ltd –5.40%

Union Bank of India (UK) Ltd – 5.15%

Three-year fixed rate bond

Zenith Bank – 1.85%

Investec Bank plc (Raisin UK) – 4.71% (payable on maturity)

Hanley Economic BS –5.35%

Al-Rayan Bank – 4.86%**

Four-year fixed rate bond

Gatehouse Bank – 1.92%**

UBL UK – 4.53% (payable on maturity)

UBL UK – 4.93% (payable on maturity)

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

Five-year fixed rate bond

UBL UK – 2.14% (payable on maturity)

UBL UK – 4.63% (payable on maturity)

UBL UK – 5.30% (payable on maturity)

 UBL UK – 4.64% (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

19-Jan-22

18-Jan-23

20-Dec-23

Today

Easy access ISA

Shawbrook Bank – 0.67%

Virgin Money – 3.00%

Metro Bank – 5.11%

Moneybox – 5.09% (includes bonus)

Notice ISA

Aldermore – 0.55% (30-day)

Mansfield BS – 3.00% (180-day)

Mansfield BS – 5.30% (180-day)

 Chorley Building Society – 5.05% (150-day)

One-year fixed rate ISA

Coventry BS – 1.00%

Barclays Bank – 4.00%

 Metro Bank – 5.41%

Virgin Money – 5.25%

Two-year fixed rate ISA

Newcastle BS – 1.30%

Virgin Money – 4.11%

UBL UK – 5.13% (payable on maturity)

 Close Brothers Savings – 4.75%

Three-year fixed rate ISA

UBL UK – 1.43% (payable on maturity)

UBL UK – 4.43% (payable on maturity)

UBL UK – 5.11% (payable on maturity)

 UBL UK – 4.61% (payable on maturity)

Four-year fixed rate ISA

UBL UK – 1.54% (payable on maturity)

Gatehouse Bank – 4.20%**

UBL UK – 4.93% (payable on maturity)

UBL UK – 4.54% (payable on maturity)

Five-year fixed rate ISA

UBL UK – 1.82% (payable on maturity)

Hinckley & Rugby BS – 4.25%

UBL UK – 5.30% (payable on maturity)

UBL UK – 4.64% (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

 

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

“Following significant falls in inflation in October and November, this time last month there were over 1100 inflation-beating savings deals available. Despite today’s slight CPI rise and recent rate reductions, there still remain just under 1000 available that can trump inflation.

“We recently saw the highest month-on-month drop to fixed savings rates in 15 years, but variable rates have remained fairly steady despite the fluctuation of other factors. With some no notice accounts still paying over 5% interest, their instant accessibility may be a tempting factor for those not wishing to lock money away for a defined period.

“Despite many providers across the sector significantly cutting rates in recent weeks, challengers banks have continued to occupy the top positions in the charts. These providers are often able to offer very competitive deals, however their readiness to pull top rates once targets have been hit means it’s imperative to strike while the iron is hot to secure the best deal.”

*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, 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:

“Following significant falls in inflation in October and November, this time last month there were over 1100 inflation-beating savings deals available. Despite today’s slight CPI rise and recent rate reductions, there still remain just under 1000 available that can trump inflation.

“We recently saw the highest month-on-month drop to fixed savings rates in 15 years, but variable rates have remained fairly steady despite the fluctuation of other factors. With some no notice accounts still paying over 5% interest, their instant accessibility may be a tempting factor for those not wishing to lock money away for a defined period.

“Despite many providers across the sector significantly cutting rates in recent weeks, challengers banks have continued to occupy the top positions in the charts. These providers are often able to offer very competitive deals, however their readiness to pull top rates once targets have been hit means it’s imperative to strike while the iron is hot to secure the best deal.”

*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, 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