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Top savings deals flourish, but inflation persists

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Rachel Springall, Press Officer
Rachel Springall, Press Officer / Finance Expert T: 01603 476210 E: Email Rachel
22/06/2022

Top savings deals flourish, but inflation persists

Top savings deals are on the rise across various sectors, as providers compete for a place in the spotlight. Moneyfacts.co.uk reveals the top rate deals available to savers searching for a competitive return to ease inflation’s force.

Top savings deals flourish, but inflation persists

Top savings deals are on the rise across various sectors, as providers compete for a place in the spotlight. 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 9.1% during May, from 9.0% in April.
  • The number of deals able to outpace inflation has not changed since last month. There is not one standard savings account that can outpace 9.1%*.
  • The predicted rate for inflation during Q2 2023 is 6.6%.
  • In June 2021, there were no deals that could beat 2.1% (May 2021 CPI) and in June 2020, there were 440 deals (35 easy access, 38 notice accounts, 31 variable rate ISAs, 96 fixed rate ISAs and 240 fixed rate bonds) that could beat 0.5% (May 2020 CPI)*.
  • The Consumer Price Index (CPI) rose to 9.1% during May, from 9.0% in April.
  • The number of deals able to outpace inflation has not changed since last month. There is not one standard savings account that can outpace 9.1%*.
  • The predicted rate for inflation during Q2 2023 is 6.6%.
  • In June 2021, there were no deals that could beat 2.1% (May 2021 CPI) and in June 2020, there were 440 deals (35 easy access, 38 notice accounts, 31 variable rate ISAs, 96 fixed rate ISAs and 240 fixed rate bonds) that could beat 0.5% (May 2020 CPI)*.

Savings market analysis

Top savings deals at £10,000 gross

17-Jun-20

16-Jun-21

18-May-22

Today

Easy access account

National Savings & Investments – 1.15%

Atom Bank – 0.50%

Chase – 1.49%***

Virgin Money – 1.55%***

Notice account

ICICI Bank UK – 1.39% (95-day)

Shawbrook Bank – 0.72% (120-day)

PCF Bank – 1.63% (180-day)

Oxbury Bank – 1.95% (180-day)

One-year fixed rate bond

Al Rayan Bank – 1.20%**

Gatehouse Bank – 0.91%**

Vanquis Bank – 2.27%

Atom Bank – 2.60%

Two-year fixed rate bond

Al Rayan Bank – 1.40%**

UBL UK – 1.12% (payable on maturity)

Al Rayan Bank – 2.68%**

BLME – 3.00%**

Three-year fixed rate bond

Al Rayan Bank – 1.50%**

Cynergy Bank – 1.25%

Al Rayan Bank – 2.78%**

BLME – 3.05%**

Four-year fixed rate bond

BLME – 1.55%**

Zopa – 1.19%

Ikano Bank – 2.75%

BLME – 3.10%**

Five-year fixed rate bond

BLME – 1.60%**

UBL UK – 1.60% (payable on maturity)

Hodge Bank – 2.83%

BLME – 3.25%**

**Islamic bank, pays an expected profit rate. ***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

17-Jun-20

16-Jun-21

18-May-22

Today

Easy access ISA

Al Rayan Bank – 1.10%**

Cynergy Bank – 0.54%

Marcus by Goldman Sachs® – 1.00%

Paragon Bank – 1.35%

Notice ISA

Teachers BS – 0.90% (90-day)

Aldermore – 0.35% (30-day)

Melton BS – 1.00% (100-day)

Aldermore – 1.40% (30-day)

One-year fixed rate ISA

Al Rayan Bank – 1.20%**

Shawbrook Bank – 0.56%

Virgin Money – 1.76%***

Virgin Money – 2.06%

Two-year fixed rate ISA

Al Rayan Bank – 1.40%**

UBL UK – 0.81% (payable on maturity)

Shawbrook Bank – 2.00%

Virgin Money – 2.36%

Three-year fixed rate ISA

UBL UK – 1.11% (payable on maturity)

UBL UK – 0.97% (payable on maturity)

Hampshire Trust Bank – 2.16%

Leeds BS – 2.75%

Four-year fixed rate ISA

Hodge Bank – 1.05%

Hodge Bank – 0.65%

UBL UK – 2.17% (payable on maturity)

UBL UK – 2.44% (payable on maturity)

Five-year fixed rate ISA

UBL UK – 1.24% (payable on maturity)

UBL UK – 1.24% (payable on maturity)

Furness BS – 2.20%

UBL UK – 2.74% (payable on maturity)

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

Savings market analysis

Top savings deals at £10,000 gross

17-Jun-20

16-Jun-21

18-May-22

Today

Easy access account

National Savings & Investments – 1.15%

Atom Bank – 0.50%

Chase – 1.49%***

Virgin Money – 1.55%***

Notice account

ICICI Bank UK – 1.39% (95-day)

Shawbrook Bank – 0.72% (120-day)

PCF Bank – 1.63% (180-day)

Oxbury Bank – 1.95% (180-day)

One-year fixed rate bond

Al Rayan Bank – 1.20%**

Gatehouse Bank – 0.91%**

Vanquis Bank – 2.27%

Atom Bank – 2.60%

Two-year fixed rate bond

Al Rayan Bank – 1.40%**

UBL UK – 1.12% (payable on maturity)

Al Rayan Bank – 2.68%**

BLME – 3.00%**

Three-year fixed rate bond

Al Rayan Bank – 1.50%**

Cynergy Bank – 1.25%

Al Rayan Bank – 2.78%**

BLME – 3.05%**

Four-year fixed rate bond

BLME – 1.55%**

Zopa – 1.19%

Ikano Bank – 2.75%

BLME – 3.10%**

Five-year fixed rate bond

BLME – 1.60%**

UBL UK – 1.60% (payable on maturity)

Hodge Bank – 2.83%

BLME – 3.25%**

**Islamic bank, pays an expected profit rate. ***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

17-Jun-20

16-Jun-21

18-May-22

Today

Easy access ISA

Al Rayan Bank – 1.10%**

Cynergy Bank – 0.54%

Marcus by Goldman Sachs® – 1.00%

Paragon Bank – 1.35%

Notice ISA

Teachers BS – 0.90% (90-day)

Aldermore – 0.35% (30-day)

Melton BS – 1.00% (100-day)

Aldermore – 1.40% (30-day)

One-year fixed rate ISA

Al Rayan Bank – 1.20%**

Shawbrook Bank – 0.56%

Virgin Money – 1.76%***

Virgin Money – 2.06%

Two-year fixed rate ISA

Al Rayan Bank – 1.40%**

UBL UK – 0.81% (payable on maturity)

Shawbrook Bank – 2.00%

Virgin Money – 2.36%

Three-year fixed rate ISA

UBL UK – 1.11% (payable on maturity)

UBL UK – 0.97% (payable on maturity)

Hampshire Trust Bank – 2.16%

Leeds BS – 2.75%

Four-year fixed rate ISA

Hodge Bank – 1.05%

Hodge Bank – 0.65%

UBL UK – 2.17% (payable on maturity)

UBL UK – 2.44% (payable on maturity)

Five-year fixed rate ISA

UBL UK – 1.24% (payable on maturity)

UBL UK – 1.24% (payable on maturity)

Furness BS – 2.20%

UBL UK – 2.74% (payable on maturity)

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

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

“Inflation is eating its way into the real spending power of consumers’ cash and there is not one cash savings account that pays anywhere close to CPI. It has now been over a year since savers were able to beat inflation, but over this period interest rates have been on a steady rise. This means savers coming off a fixed deal or who are comparing their existing variable accounts to the latest top rates could find a more attractive return. The Bank of England’s forecast for inflation is to float around 6.6% during Q2 2023, which is far above the current 2% target. If inflation was at 2%, savers could beat it today with a fixed bond or fixed ISA.

“Savers who decide to fix a lump sum for a year will find the top one-year fixed bond rate is much higher than the top deal seen a year ago, which paid less than 1%. As interest rates fell to record lows in 2021, it’s refreshing to see such improvements across the savings spectrum this year. Along with the rising cost of living pressures, savers will find better returns but fixing for the longer-term may be too much of a commitment. Consumers may be wiser to spread their cash across easy access accounts and short-term fixed to secure a guaranteed return but also have a portion of their money ready to access in case of emergencies or to cover unexpected costs.

“In such a volatile market, keeping abreast of rate rises is crucial for savers as there is no guarantee that table-topping accounts will stay on the shelf for long. The market is continuing to flourish due to competition from challenger banks and building societies, coupled with the back-to-back Bank of England base rate rises. However, loyal savers may not be benefiting very much, or at all, so it’s wise to compare offers and switch.”

*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:

“Inflation is eating its way into the real spending power of consumers’ cash and there is not one cash savings account that pays anywhere close to CPI. It has now been over a year since savers were able to beat inflation, but over this period interest rates have been on a steady rise. This means savers coming off a fixed deal or who are comparing their existing variable accounts to the latest top rates could find a more attractive return. The Bank of England’s forecast for inflation is to float around 6.6% during Q2 2023, which is far above the current 2% target. If inflation was at 2%, savers could beat it today with a fixed bond or fixed ISA.

“Savers who decide to fix a lump sum for a year will find the top one-year fixed bond rate is much higher than the top deal seen a year ago, which paid less than 1%. As interest rates fell to record lows in 2021, it’s refreshing to see such improvements across the savings spectrum this year. Along with the rising cost of living pressures, savers will find better returns but fixing for the longer-term may be too much of a commitment. Consumers may be wiser to spread their cash across easy access accounts and short-term fixed to secure a guaranteed return but also have a portion of their money ready to access in case of emergencies or to cover unexpected costs.

“In such a volatile market, keeping abreast of rate rises is crucial for savers as there is no guarantee that table-topping accounts will stay on the shelf for long. The market is continuing to flourish due to competition from challenger banks and building societies, coupled with the back-to-back Bank of England base rate rises. However, loyal savers may not be benefiting very much, or at all, so it’s wise to compare offers and switch.”

*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