More than 1,000 savings accounts beat inflation - act now to bag the top rates

As inflation dropped again in November, more savings accounts now beat inflation - but you will need to act fast to bag inflation-busting rates before they disappear

Ladder on Stack of Coins
(Image credit: Nora Carol Photography)

Increasing numbers of savings accounts now beat inflation but savers will have to act fast to bag the best deals.

Now is a gold dust moment for savers as inflation has fallen again to 3.9% and new data by Moneyfacts shows 1,127 savings accounts are offering inflation-busting rates for the first time since 2021- plus savings rates still stand at a historic 15-year high

Yet, research from Shawbrook reveals that one in four savers are still earning less than 2% on their savings.

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Now is the time to ditch any savings account paying less than 3.9% and open a top-paying saver that gives you better returns- including an easy access account or one-year fixed bond. 

Time is of the essence though, as MoneyWeek data shows the best savings rates are dropping daily since interest rates were held at 5.25% for the third time

Find out which savings accounts beat inflation and why you need to act now to bag the top rates. 

Savings accounts that beat inflation

The Consumer Prices Index (CPI) measure of inflation fell sharply, from 6.7% in September to 4.6% in October- and now to 3.9% in November, according to the Office for National Statistics

November’s fall is largely owing to a drop in petrol prices and lower food prices. 

According to new data by Moneyfacts, a total of 1,127 inflation-busting savings accounts are now on the market, consisting of 109 easy access savers, 135 notice accounts, 84 variable rate ISAs, 246 fixed rate ISAs and 553 fixed rate bonds.

As a result, 235 more savings deals beat inflation compared with the previous month

In contrast, no savings accounts were beating the 10.7% rate of inflation in December 2022, or in December 2021 when inflation stood at 5.1%. 

But James Hyde, spokesperson for Moneyfacts warns that consumers need to “strike while the iron is hot to secure the most favourable deal.”

At the time of writing, these are the top rates on the market right now. 

Swipe to scroll horizontally
Type of accountProvider Rate AERMinimum deposit
Easy access savings Metro Bank 5.22%£500
One year fixed bondMetro Bank 5.66%£500
Notice accountRCI Bank 95 day notice account5.3%£1,000
Easy access ISAMoneybox5.09%£500
One year fixed ISAMetro Bank 5.41%£1

Metro Bank is dominating the best buy table, offering the top easy access saver, one-year fixed bond and one-year fixed ISA. Plus all top accounts remain above the 5% mark. 

“Challenger banks continue to dominate the top positions in the charts, with many offering enticing rates to raise capital in a competitive market,” says Hyde.

“However, their readiness to pull popular products once funding targets have been reached can lead to a great deal of variation.”

Why you need to act now to get the top savings rates

These inflation-busting figures might have a short shelf-life, as MoneyWeek data shows savings rates are falling daily. 

Just today (20 December), the top 5.7% one-year fixed bond by Al Rayan Bank dropped its rate to 5.5%, giving Metro Bank the top spot with its 5.66% saver. 

Previously, Metro Bank was hugging the top spot when it launched its one-year fixed saver offering 5.91% on 10 November. Since then, its rate dipped to 5.8% on 23 November and fell further to 5.66% on 12 December. 

Plus, just last week we saw four lenders drop the rates on their one-year fixed bond, and three providers followed yesterday. 

To top it all, new data by Moneyfacts revealed that the average fixed savings rate showed its biggest fall in a decade from November to December- highlighting the urgency for savers to act now, as rates could start to fall below the rate of inflation soon. 

ISA rates are also dipping just as quickly, as just today we’ve seen two fixed ISA deals pulled and two fixed ISA deal rates drop:  

Adam Thrower, head of savings at Shawbrook urges savers to act now: “Savers need to change their mindsets to maximise the opportunity to grow their savings while they can, while interest rates exceed inflation,” he says.

“It is reasonable to expect that savings rates are as good as they are going to get, so the window is closing for savers to make the most of the opportunity.”

Vaishali Varu
Staff Writer

Vaishali has a background in personal finance and a passion for helping people manage their finances. As a staff writer for MoneyWeek, Vaishali covers the latest news, trends and insights on property, savings and ISAs.

She also has bylines for the U.S. personal finance site and Ideal Home, GoodTo, inews, The Week and the Leicester Mercury

Before joining MoneyWeek, Vaishali worked in marketing and copywriting for small businesses. Away from her desk, Vaishali likes to travel, socialise and cook homely favourites