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Nine out of 10 savings accounts beat 2.3% inflation rate

Nine out of 10 savings accounts beat 2.3% inflation rate
Matt Browning
Written By:
Matt Browning
Posted:
22/05/2024
Updated:
22/05/2024

Nine out of 10 savings accounts now beat the Consumer Prices Index (CPI) measure of inflation, analysis reveals.

This follows today’s (22 May) report from the Office for National Statistics which found that inflation has eased 2.3% in the year to April 2024.

Savers can now enjoy over 1,350 savings accounts that beat that rate, according to Moneyfacts’ data.

They are divided between the following accounts:

  • 257 easy access
  • 164 notice
  • 205 variable rate ISAs
  • 303 fixed rate ISAs
  • 629 fixed rate bonds

 

Based on having £10,000 in your savings kitty, the best easy access account remains the Ulster Bank rate of 5.20%, with DF Capital the leading provider for notice accounts thanks to a 5.35% rate.

The top one-year fix is priced at 5.21%, from Habib Bank Zurich.

Last year, the top rate for easy access and notice accounts were both 4.25% and a one-year fix 5.00%.

Meanwhile, in the ISA market with the same cash set aside, Plum provides the best rate at 5.06% for customers wanting an easy access account. As is often the case, West Brom Building Society boasts the best notice ISA, with its 60-day account paying 5.10%.

Virgin Money has the leading one-year fixed ISA with a 5.05% offer, which is almost treble the same best deal two years ago (1.65%).

‘Fixed rate arena hasn’t changed a huge amount’

James Hyde, spokesperson at Moneyfactscompare.co.uk, said: “There has been some volatility across the savings market in recent times, with a mix of rate rises and reductions across the piece.

“Changes substantially balancing one another out has led to average rates not changing a huge amount recently in the fixed rate arena. Meanwhile, variable savings rates have remained very steady over the past few months, and this has continued in recent weeks.”

Hyde also pointed out that if you are coming off of a longer term fixed-rate ought to receive a “significantly” higher rate should you wish to pick a fixed-rate again.

He added: “ISA rates rose significantly during ISA season, especially in the buildup to the deadline for utilising allowances on 5 April.

“Beyond that date, average rates in the sector have settled down again. The top fixed ISAs are paying less than their fixed rate bond counterparts, with very few accounts currently paying over 5% as it stands.”