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Top returns double in past year, but inflation persists

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Rachel Springall, Press Officer
Rachel Springall, Press Officer / Finance Expert T: 01603 476210 E: Email Rachel
13/04/2022

Top returns double in past year, but inflation persists

Savers will be pleased to see some of the top rates have doubled over the past year, but inflation is having a devastating impact on their cash and is 10 times higher than it was a year ago. Moneyfacts.co.uk reveals the top rate deals available to savers searching for a competitive return to ease inflation’s force.

Top returns double in past year, but inflation persists

Savers will be pleased to see some of the top rates have doubled over the past year, but inflation is having a devastating impact on their cash and is 10 times higher than it was a year ago. Moneyfacts.co.uk reveals the top rate deals available to savers searching for a competitive return to ease inflation’s force.

  • The Consumer Price Index (CPI) rose to 7.0% during March, from 6.2% in February.
  • The number of deals able to outpace inflation has not changed since last month. There is not one standard savings account that can outpace 7.0%*.
  • The predicted rate for inflation during Q1 2023 is 5.2%.
  • In April 2021, 90 deals (two easy access accounts, 12 fixed rate ISAs and 76 fixed rate bonds) could beat 0.7% (March 2021 CPI) and in April 2020, 65 deals (four notice accounts, four fixed rate ISAs and 57 fixed rate bonds) could beat 1.5% (March 2020 CPI)*.
  • The Consumer Price Index (CPI) rose to 7.0% during March, from 6.2% in February.
  • The number of deals able to outpace inflation has not changed since last month. There is not one standard savings account that can outpace 7.0%*.
  • The predicted rate for inflation during Q1 2023 is 5.2%.
  • In April 2021, 90 deals (two easy access accounts, 12 fixed rate ISAs and 76 fixed rate bonds) could beat 0.7% (March 2021 CPI) and in April 2020, 65 deals (four notice accounts, four fixed rate ISAs and 57 fixed rate bonds) could beat 1.5% (March 2020 CPI)*.

 

Savings market analysis

Top savings deals at £10,000 gross

22-Apr-20

21-Apr-21

23-Mar-22

Today

Easy access account

RCI Bank UK – 1.20%

Virgin Money – 0.50%***

Virgin Money – 1.00%***

Chase – 1.49%****

Notice account

ICICI Bank UK – 1.59% (95-day)

Moneycorp Bank – 0.65% (90-day)

Shawbrook Bank – 1.15% (120-day)

OakNorth Bank – 1.25% (120-day)

One-year fixed rate bond

BLME – 1.60%**

Atom Bank – 0.62%

Al Rayan Bank – 1.70%**

Al Rayan Bank – 1.85%**

Two-year fixed rate bond

BLME – 1.75%**

BLME – 0.80%**

JN Bank – 1.96%

Al Rayan Bank – 2.20%**

Three-year fixed rate bond

Vanquis Bank – 1.80%

Hodge Bank – 0.95%

JN Bank – 2.11%

Cynergy Bank – 2.28%

Four-year fixed rate bond

RCI Bank UK – 1.80%

Zopa – 0.94%

PCF Bank – 2.15%

Gatehouse Bank – 2.25%**

Five-year fixed rate bond

RCI Bank UK – 1.90%

Gatehouse Bank – 1.40%**

PCF Bank – 2.30%

Gatehouse Bank – 2.50%**

**Islamic bank, pays an expected profit rate. ***Available to new and existing Virgin Money M Plus Account customers. ****Available to new and existing Current Account Customers. Inflation announcement dates. Source: Moneyfacts.co.uk

 

ISA market analysis

Top savings deals at £10,000 gross

22-Apr-20

21-Apr-21

23-Mar-22

Today

Easy access ISA

Shawbrook Bank – 1.25%

Yorkshire Building Society – 0.45%

Paragon Bank – 0.80%

Marcus by Goldman Sachs® – 1.00%

Notice ISA

Aldermore – 1.30% (30-day)

The Melton BS – 0.50% (60-day)

Buckinghamshire BS – 0.60% (30-day)

Melton BS – 1.00% (100-day)

One-year fixed rate ISA

Post Office Money® – 1.30%

Monmouthshire BS – 0.49%

OakNorth Bank – 1.28%

Gatehouse Bank – 1.40%**

Two-year fixed rate ISA

Shawbrook Bank – 1.48%

State Bank of India – 0.65%

UBL UK – 1.61% (payable on maturity)

Gatehouse Bank – 1.75%**

Three-year fixed rate ISA

Shawbrook Bank – 1.52%

Close Brothers – 0.70%

UBL UK – 1.73% (payable on maturity)

Gatehouse Bank – 1.85%**

Four-year fixed rate ISA

Hodge Bank – 1.30%

Hodge Bank – 0.65%

UBL UK – 1.74% (payable on maturity)

Gatehouse Bank – 1.90%**

Five-year fixed rate ISA

Shawbrook Bank – 1.61%

Shawbrook Bank – 1.10%

UBL UK – 1.93% (payable on maturity)

Gatehouse Bank – 2.10%**

**Islamic bank, pays an expected profit rate. Inflation announcement dates. Source: Moneyfacts.co.uk

 

 

Savings market analysis

Top savings deals at £10,000 gross

22-Apr-20

21-Apr-21

23-Mar-22

Today

Easy access account

RCI Bank UK – 1.20%

Virgin Money – 0.50%***

Virgin Money – 1.00%***

Chase – 1.49%****

Notice account

ICICI Bank UK – 1.59% (95-day)

Moneycorp Bank – 0.65% (90-day)

Shawbrook Bank – 1.15% (120-day)

OakNorth Bank – 1.25% (120-day)

One-year fixed rate bond

BLME – 1.60%**

Atom Bank – 0.62%

Al Rayan Bank – 1.70%**

Al Rayan Bank – 1.85%**

Two-year fixed rate bond

BLME – 1.75%**

BLME – 0.80%**

JN Bank – 1.96%

Al Rayan Bank – 2.20%**

Three-year fixed rate bond

Vanquis Bank – 1.80%

Hodge Bank – 0.95%

JN Bank – 2.11%

Cynergy Bank – 2.28%

Four-year fixed rate bond

RCI Bank UK – 1.80%

Zopa – 0.94%

PCF Bank – 2.15%

Gatehouse Bank – 2.25%**

Five-year fixed rate bond

RCI Bank UK – 1.90%

Gatehouse Bank – 1.40%**

PCF Bank – 2.30%

Gatehouse Bank – 2.50%**

**Islamic bank, pays an expected profit rate. ***Available to new and existing Virgin Money M Plus Account customers. ****Available to new and existing Current Account Customers. Inflation announcement dates. Source: Moneyfacts.co.uk

 

ISA market analysis

Top savings deals at £10,000 gross

22-Apr-20

21-Apr-21

23-Mar-22

Today

Easy access ISA

Shawbrook Bank – 1.25%

Yorkshire Building Society – 0.45%

Paragon Bank – 0.80%

Marcus by Goldman Sachs® – 1.00%

Notice ISA

Aldermore – 1.30% (30-day)

The Melton BS – 0.50% (60-day)

Buckinghamshire BS – 0.60% (30-day)

Melton BS – 1.00% (100-day)

One-year fixed rate ISA

Post Office Money® – 1.30%

Monmouthshire BS – 0.49%

OakNorth Bank – 1.28%

Gatehouse Bank – 1.40%**

Two-year fixed rate ISA

Shawbrook Bank – 1.48%

State Bank of India – 0.65%

UBL UK – 1.61% (payable on maturity)

Gatehouse Bank – 1.75%**

Three-year fixed rate ISA

Shawbrook Bank – 1.52%

Close Brothers – 0.70%

UBL UK – 1.73% (payable on maturity)

Gatehouse Bank – 1.85%**

Four-year fixed rate ISA

Hodge Bank – 1.30%

Hodge Bank – 0.65%

UBL UK – 1.74% (payable on maturity)

Gatehouse Bank – 1.90%**

Five-year fixed rate ISA

Shawbrook Bank – 1.61%

Shawbrook Bank – 1.10%

UBL UK – 1.93% (payable on maturity)

Gatehouse Bank – 2.10%**

**Islamic bank, pays an expected profit rate. Inflation announcement dates. Source: Moneyfacts.co.uk

 

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

“Savers could protect their cash from inflation a year ago, but this was short-lived when inflation rose to 1.5% during May 2021 (April CPI) and is now 10 times higher than when it sat at 0.70% in April 2021 (March CPI). If savers had locked into a one-year fixed bond or ISA in April 2021, they could have missed out on higher returns, as interest rates rose during the second half of 2021. The inflation pressure on the everyday lives of consumers this year has been relentless and for savers it’s impossible to beat it unless it sat closer to the Government’s desired target of 2%. Despite an uplift in rates across the savings spectrum, not one standard savings account can outpace inflation today.

“Challenger banks and building societies have been competing fiercely with rate changes over the past month, with some changing their rates within just a few days of prior amendments. This has resulted in the top rate tables becoming particularly volatile, but thankfully for savers, has provided much higher rates than they could have secured a month ago. The back-to-back base rate rises are also having a positive influence on the market, but not all savings providers, such as the high street banks, have passed on the rises in full. The need for savers to review their rate and switch is crucial, especially as we have entered a new tax year and the ISA market is booming.

“A good deal might not last for very long, but savers may also need to think carefully about how soon they may need access to their cash if they are considering a fixed bond or fixed ISA. Keeping a close eye on the present market and acting quickly is wise to secure a top rate. If savers have an existing variable rate account which has not risen in line with the base rate moves, then switching to an alternative by ditching any loyalty is a wise move to get a better return.”

*Data note: Please note that these savings product numbers only include deals that are available to UK residents (easy access, notice, fixed rate bonds, variable or fixed ISAs) and exclude regular savers and children’s savers (this figure does not count each interest payment option for each account), based on a £10,000 deposit. Higher rates may be available for other levels of deposit.

 

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

“Savers could protect their cash from inflation a year ago, but this was short-lived when inflation rose to 1.5% during May 2021 (April CPI) and is now 10 times higher than when it sat at 0.70% in April 2021 (March CPI). If savers had locked into a one-year fixed bond or ISA in April 2021, they could have missed out on higher returns, as interest rates rose during the second half of 2021. The inflation pressure on the everyday lives of consumers this year has been relentless and for savers it’s impossible to beat it unless it sat closer to the Government’s desired target of 2%. Despite an uplift in rates across the savings spectrum, not one standard savings account can outpace inflation today.

“Challenger banks and building societies have been competing fiercely with rate changes over the past month, with some changing their rates within just a few days of prior amendments. This has resulted in the top rate tables becoming particularly volatile, but thankfully for savers, has provided much higher rates than they could have secured a month ago. The back-to-back base rate rises are also having a positive influence on the market, but not all savings providers, such as the high street banks, have passed on the rises in full. The need for savers to review their rate and switch is crucial, especially as we have entered a new tax year and the ISA market is booming.

“A good deal might not last for very long, but savers may also need to think carefully about how soon they may need access to their cash if they are considering a fixed bond or fixed ISA. Keeping a close eye on the present market and acting quickly is wise to secure a top rate. If savers have an existing variable rate account which has not risen in line with the base rate moves, then switching to an alternative by ditching any loyalty is a wise move to get a better return.”

*Data note: Please note that these savings product numbers only include deals that are available to UK residents (easy access, notice, fixed rate bonds, variable or fixed ISAs) and exclude regular savers and children’s savers (this figure does not count each interest payment option for each account), based on a £10,000 deposit. Higher rates may be available for other levels of deposit.

 

Notes to editors

Pioneering financial comparison technology for over 30 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.

Moneyfacts.co.uk is a financial product price comparison site, launched in 2000, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfacts.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 Moneyfacts.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 30 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.

Moneyfacts.co.uk is a financial product price comparison site, launched in 2000, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfacts.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 Moneyfacts.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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Rachel Springall Press Officer / Finance Expert
Eleanor Williams Press Officer / Finance Expert