Billions of pounds are being eroded by inflation as savings are left languishing in accounts paying low interest rates.
The total balance of adult savings accounts failing to beat inflation has surged by almost £200 billion since January, reaching £660 billion, according to savings app Spring.
Official figures show UK inflation rose to 3.6% in June, up from May’s figure of 3.4% and still high above the 2% target. Inflation stood at 3% in January 2025.
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Derek Sprawling, head of money at Spring, said the analysis “should be a wake-up call for savers”, adding: “It’s time to review where your money is held and ensure it’s working harder for you.”
Sprawling urged savers to look for providers that offer rates above 3.6% as “anything less means your savings are losing value in real terms”.
It could therefore be worth reviewing the rates you’re getting and checking your savings are working as hard as possible. We look at the top savings accounts for rates that beat inflation.
Which are the best savings accounts to beat inflation?
Account | Rate (AER) | Access Notes / bonus rate |
|---|---|---|
Chase Saver with Boosted Rate | 5.00% | Rate includes 2.17% bonus for 12 months |
Atom Bank Instant Saver Reward | 4.6% | Lower rate paid if a withdrawal is made |
Cahoot Simple Saver (Issue 10) | 4.55% | Rate is decreased to 0% for portion of balance between £500,001 and £2 million |
Principality Building Society Online Bonus Triple Access (Issue 7) | 4.55% | Rate includes 1.80% bonus for 12 months |
Account | Rate (AER) | Access Notes / bonus rate |
|---|---|---|
Plum Cash ISA | 4.98% | Rate includes 1.67% bonus for 12 months from £100. |
Trading 212 Cash ISA Promo Rate | 4.98% | Rate includes 0.88% bonus for 12 months |
Moneybox Cash ISA | 4.65% | Rate includes 0.70% bonus for 12 months |
Tembo Money Cash ISA | 4.64% | Minimum opening amount £10 |
Account | Rate (AER) |
|---|---|
AlRayan Bank Prosper - 1 Year Fixed Term Deposit | 4.60% |
GB Bank 1 Year Fixed Rate Bond | 4.53% |
Castle Community Bank Fixed Rate Savings | 4.52% |
Tandem Bank 1 Year Fixed Saver | 4.52% |
Account | Rate (AER) |
|---|---|
Chetwood Bank HL Active Savings - 1 Year Fixed Rate Cash ISA | 4.35% |
Paragon Bank 15 Month Fixed Rate Cash ISA | 4.28% |
Tembo Money Cash ISA - Fixed Rate | 4.27% |
Kent RelianceOne Year Fixed Rate Cash ISA - Issue 120 | 4.25% |
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