You are here: Home - Saving & Banking - News -

Number of savings accounts beating inflation ‘at highest level for some time’

Written by:
Inflation falling to 1.5% in May, its lowest level for four and half years, should be welcome news for beleaguered savers.

However, it should also serve as a reminder to savers to check their existing rates and make sure they are getting the most competitive deal on the market.

“There can be a significant difference between the average and top paying rates so moving to a better deal can go a long way to help savers limit the impact [of inflation] on their pots,” says Kevin Mountford, head of banking at

In order to beat inflation and benefit in real terms, basic rate taxpayers need an account paying a rate of 1.88 per cent, while higher rate taxpayers need a rate of 2.50 per cent.

According to, the number of savings accounts that current beat inflation is now at the highest level for some time so savers should take advantage.

The comparison site says, while there are no easy access savings accounts paying 1.88 per cent or above, there are now 117 fixed rate bonds, 4 cash ISAs and 71 fixed rate ISAs.

For higher rate taxpayers, 40 fixed rate bonds, 4 cash ISAs and 71 fixed rate ISAs pay 2.5 per cent or above.

Mountford said: “Falling inflation also helps ease the pressure on UK household finances, although with indications that Bank of England Base Rate could rise before the end of the year, this position could change in the near future.”

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Flight cancelled or delayed? Your rights explained

With no sign of the problems in UK aviation easing over the peak summer period, many will worry whether holida...

Rail strikes: Your travel and refund rights

Thousands of railway workers will strike across three days this week, grinding much of the transport system to...

How your monthly bills could rise as the base rate reaches 1.25%

The Bank of England has raised the base rate to 1.25% as predicted – the fifth consecutive rise in just six ...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week