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The inflation-beating savings accounts

Joanna Faith
Written By:
Joanna Faith
Posted:
Updated:
15/08/2018

Savers will have to tie up their money for at least four years to get a rate that will beat or match inflation.

Official figures published today show UK consumer price inflation (CPI) rose to 2.5% last month, up from 2.4% in June.

That means the value of any money sitting in accounts paying below 2.5% is being eroded in real terms.

This is yet more bad news for savers who have been left disappointed after most providers failed to pass on the full Bank of England base rate rise but quickly hiked mortgage rates.

Laura Suter, personal finance analyst at investment platform AJ Bell, said: “The high inflation figures continue to clobber savers who are in many cases losing money on their savings in real terms.

“No easy-access savings accounts pay anywhere near as much as inflation, and banks stubbornly refuse to pass on all of the interest rate hike announced by the Bank of England earlier this month.”

The top paying four-year fixed rate bond is from Secure Trust Bank paying 2.51% but savers can get an expected 2.7% on a five-year product from sharia bank BLME.

Below are the 22 fixed rate bonds that pay 2.5% or more.

inflation accounts

[Source: Savings Champion. Rates correct as at 15/08/2018]

A number of current accounts also offer inflation-beating interest rates but they come with various restrictions and demands.

current accounts