Inflation fell 20 basis points to 3.6% in October, the latest official data shows.
While falling inflation will be welcomed by many, October’s reading is still much higher than the Bank of England’s target of 2%. Price growth has been stubbornly above target over the past few years, only briefly dipping below to 1.7% in September 2024.
It means the interest paid on many savings accounts isn’t keeping up with inflation – the average savings rate among UK accounts is 3.4%, according to Moneyfacts. This is 20 basis points lower than the latest inflation reading.
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Easy access savings accounts currently pay a rate of just 2.5% on average, more than a full percentage point lower than October’s rate of inflation.
The top easy-access savings account on the market right now is West Brom Building Society’s triple access saver, which offers 4.55% in interest, up to a maximum of three withdrawals a year.
Savers who want to access their cash more often can make the most of Monument Bank’s easy access account with a boosted rate, which pays 4.51%, inclusive of a 0.74% fixed bonus until 1 December 2026.
Caitlyn Eastell, spokesperson at Moneyfacts, said: “Today just over one in two accounts offer over 3.6%, but with interest rates trending downward, this number is likely to drop.
“Competition has been scarce, especially across cash ISAs, where none of the top rates have shifted. It may be the case that providers are waiting to see what is announced in the Autumn Budget before they make any significant changes.
Which are the best savings accounts to beat inflation?
Best easy-access savings accounts
Account | Rate (AER) | Access notes / bonus rate |
|---|---|---|
Monument Bank Easy Access Savings Boosted Rate | 4.51% | Rate includes 0.74% bonus until 01.12.2026 |
Chase Saver With Boosted Rate | 4.5% | Rate includes 1.94% bonus for 12 months |
Revolut Instant Access Savings - Ultra | 4.5% | £45 monthly account fee |
Sidekick Multi Shield | 4.48% | Rate includes a 1% bonus for six months between £10,000 and £85,000 |
Best easy-access cash ISAs
Account | Rate (AER) | Access Notes / bonus rate |
|---|---|---|
Trading 212 Cash ISA Promo Rate | 4.56% | Rate includes 0.71% bonus for 12 months |
Hargreaves Lansdown Active Savings - HL ISA (powered by Shawbrook) | 4.55% | Save between £1 and £20,000 |
Moneybox Cash ISA | 4.47% | Rate includes 0.77% bonus for 12 months |
Plum Cash ISA | 4.45% | Rate includes 1.39% bonus for 12 months |
Best one-year fixed savings accounts
Account | Rate (AER) |
|---|---|
LHV Bank 1 Year Fixed Rate Bond | 4.46% |
DF Capital 1 Year Fixed Rate Deposit (Issue 20) | 4.45% |
Habib Bank Zurich plc HBZ Fixed Rate e-Deposit Account | 4.44% |
Vanquis Bank 1 Year Fixed Rate Bond | 4.42% |
Best one-year fixed cash ISAs
Account | Rate (AER) |
|---|---|
Isbank Meteor Savings 1-Year Fixed Rate Cash ISA | 4.35% |
UBL UK 1 Year Fixed Rate Cash ISA | 4.28% |
Vida Savings 1-Year Fixed Rate ISA | 4.28% |
Vanquis Bank 1 Year Fixed Rate Cash ISA | 4.28% |
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