The rate of UK inflation fell to 2.6% in March, down from 2.8% the month before.
While savings rates have been falling lately, savers can still find inflation-beating deals with the best one-year fixed-rate accounts offering up to 4.55%.
Those looking to shield their savings income from the taxman could find even better deals with a cash ISA. The best easy-access cash ISA currently pays 5.71%, while the best one-year fixed ISA pays 4.35%.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The latest data from Moneyfacts shows there are currently 1,611 savings accounts that beat inflation overall.
Are you making the most of your savings?
Now that the new tax year has begun (6 April), the annual ISA allowance has been refreshed, meaning you can put up to £20,000 into a tax-free wrapper without paying tax on how much your money has grown.
However, savers should make sure they’re getting the best deals.
Half a trillion pounds is languishing in zero or low-interest paying current and savings accounts, according to data from Spring, which is a part of Paragon Bank.
Data shows that 55% of the UK adult population (29 million) has fallen victim to savings accounts with such anaemic rates.
Collectively, this means that customers are estimated to miss out on around £20 billion in lost interest – an enormous sum considering how easy it is to switch accounts.
Not only are customers failing to get the best interest rates possible, but their money is also withering away thanks to inflation.
With this in mind, it is a good idea to review your savings and current accounts to make sure you are getting the best deal possible. We look at the best savings accounts that can beat inflation.
Which are the best savings accounts to beat inflation?
Account | Rate (AER) | Access notes / bonus rate |
|---|---|---|
Revolut Instant Access Savings - Ultra | 5.00% | Rate only available to Revolut customers who pay for Ultra |
Chip Easy Access Saver | 4.76% | Rate includes a 1.16% bonus for 12 months |
Sidekick High Yield Cash Reserve 5 | 4.76% | Rate includes 0.72% bonus for 12 months from £5,000 to £85,000. |
Atom Bank Instant Saver Reward | 4.75% | Maximum investment of £100,000 |
Chase Saver With Boosted Rate | 4.75% | Rate includes 1.69% bonus for 6 months |
Account | Rate (AER) | Access notes / bonus rate |
|---|---|---|
Moneybox Cash ISA | 5.71% | Rate includes 1.51% bonus for 3 months |
Trading 212 Cash ISA | 5.07% | Rate includes a 0.9% bonus for three months. |
Plum Cash ISA | 5.06% | Rate includes a 1.50% bonus for 12 months |
Moneybox Open Access Cash ISA | 5.05% | Rate includes a 1.05% bonus for 12 months |
Account | Rate (AER) |
|---|---|
Cynergy Bank Fixed Rate Bond | 4.55% |
GB Bank 1 Year Fixed Rate Bond | 4.55% |
Tandem Bank 1 Year Fixed Saver | 4.55% |
Conister Bank 1 Year Fixed Rate | 4.52% |
Account | Rate |
|---|---|
Chetwood Bank HL Active Savings - 1 Year Fixed Rate Cash ISA | 4.3% |
Castle Trust Bank Fixed Rate e-Cash ISA | 4.26% |
OakNorth Bank Fixed Rate Cash ISA | 4.26% |
Paragon Bank 1 Year Fixed Rate Cash ISA | 4.15% |
-
Chase increases easy access savings rate to 5% for new customers – is it the best rate on the market?Chase has been popular with savers with its competitive savings deals – but does its new improved bonus interest fixed rate make it a best buy and who is eligible?
-
8 of the best houses for sale for around £2 millionThe best houses for sale for around £2 million – from a houseboat moored at London’s Prospect Quay, Wandsworth, to a 15th-century chateau in Pas-de-Calais, France
