953 savings accounts beat inflation- how long will this last?

Only 953 inflation-busting savings accounts remain. Will the number continue to fall and where can you find the best deals?

Gold piggy bank with coins
(Image credit: ma-no)

There has been a slight drop in the number of inflation-busting savings accounts on the market after new inflation figures were released by the Office of National Statistics (ONS). 

The data revealed that the consumer price index (CPI) measure of inflation remains unchanged from January, at 4%. 

It means the warning for savers still stands to act fast to snap up the best savings rates, as only 953 deals beat inflation, data from Moneyfacts shows. 

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Adam Thrower, head of savings at Shawbrook says the inflation news “coupled with still relatively high interest rates, is good news for savers. However, a significant 40% of savers don’t even know what rate they’re receiving on their savings, so it’s likely they’re losing out.”

MoneyWeek has been tracking the savings market and can see savers can currently earn above 5% on an easy-access or one-year fixed account

Find out how many inflation-busting rates remain in various types of savers, and whether inflation will fall this year. 

Inflation-busting savings accounts 

The latest ONS data reveals inflation stayed put at 4% in the 12 months to January- the second-lowest level since September 2021. 

It follows predictions that inflation would rise. 

As a result, the number of inflation-busting rates has lowered, but not by a huge margin compared to the previous month according to Moneyfacts. 

Here’s a breakdown of the different types of savers and how many currently beat inflation compared to last month, data from Moneyfacts shows.  

Swipe to scroll horizontally
Type of account Number of savings accounts that beat inflation in January Number of savings accounts that beat inflation todayDifference in inflation-busting savings accounts available
Easy-access savings101102+1
Fixed bonds463458-5
Notice accounts 124119-5
Easy-access ISAs7281+9
Fixed ISAs 207193-14

We can see that compared to last month, more variable accounts (easy-access savings and ISAs) beat inflation, and fewer fixed accounts. 

Though this comes as no surprise, as MoneyWeek’s savings data shows 25 one-year fixed savings deals dropped in rate in January alone, and four best-buy offers pulled. 

It includes the withdrawal of Metro Bank’s desirable 5.66% one-year fixed bond

Rachel Springall, Finance Expert at Moneyfacts said: “Savers who prefer to lock their cash into a fixed rate bond or ISA for a guaranteed return will find more than half of the savings market can beat inflation, but they may be disappointed to see the top fixed rates have tumbled over the past month.

Whereas easy-access savings rates have been falling at a much steadier rate, with only five rate drops in January. 

Compared to fixed accounts, easy-access deals “have been resilient,” says Springall. 

As it stands, these are the best savings rates on the market right now. 

Swipe to scroll horizontally
Type of accountProviderRate AERMinimum deposit
Easy-access savingsCahoot5.2%£1
One-year fixed bondSmartSave5.21%£10,000
Easy-access ISAsMoneybox5.09%£500
Notice accountVanquis Bank5.4%£1,000
One-year fixed ISAVirgin Money5.25%£0

Currently, all best buys are offering above the 5% mark, which is good news as it steers away from the 4% inflation figure.

But what's on the cards for inflation for the rest of the year and how will this affect your savings? 

Will inflation fall in 2024?

It’s welcomed that inflation remains unchanged even though the government hasn't reached its 2% target, as many experts predicted that inflation would rise. 

As a result, the drop in inflation-busting savings accounts hasn’t dropped significantly this month. 

And experts believe that there could be more to celebrate this year. 

Springall said: “Inflation is predicted to come down to around 2.7% by Q4 2024 and, based on today’s top rates, savers would be able to make a return on their cash on most savings accounts on the market should interest rates hover around current levels.”

But the view that interest rates will remain at its current level (5.25%) for the coming months could be unlikely after four base rate freezes already by the Bank of England

Myron Jobson, Senior Personal Finance Analyst at interactive investor warns: “The best savings rates are seemingly on borrowed time due to the anticipation of cuts to interest rates later in the year.”

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 Kiplinger.com 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