There are 1,582 savings accounts currently beating inflation – top 14 deals today | Personal Finance | Finance
More than 1,500 savings accounts are offering inflation-beating returns, but millions are failing to lock in the top interest rates.
Consumer Price Index (CPI) inflation rose to 2.6% during November, from 2.3% in October.
According to a new analysis by Moneyfactscompare, there are currently 1,582 savings accounts that beat that rate. This includes 209 easy access, 180 notice accounts, 184 variable rate ISAs, 314 fixed rate ISAs and 695 fixed rate bonds.
However, a staggering 7.7 million people are estimated to be missing out by keeping money in accounts paying little to no interest at all.
Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, said: “Top deals across the fixed market have experienced minor fluctuations since the previous inflation announcement, bringing some welcome stability.
“Meanwhile, a handful of new providers have entered the scene, which is positive news in terms of competition and for savers willing to switch to challenger banks, who will have their own pricing strategies.”
Ms Eastell said easy access rates were among those receiving the “most notable cuts”, seeing a 0.10% reduction. However, she noted: “This is unsurprising given last month’s cut to base rate; however, a slew of providers currently offer the top-paying rate.”
She added: “Savers would be wise to take advantage of a competitive savings market and seek the highest-paying deals.”
Top 7 savings accounts
According to Moneyfacts, here are top savings accounts for each sector at the time of writing.
For easy access savings account, Atom Bank is topping the list with an Annual Equivalent rate (AER) of 4.75%.
For notice accounts, RCI Bank UK places top with an AER of 4.90% on its 95-day account.
In the one-year fixed rate savings sector, Al Rayan Bank’s account, offered through Raisin UK, has an expected rate of 4.80%.
For two-year fixes, Castle Trust Bank tops the board with an AER of 4.64%.
For three-year fixes, Hodge Bank is offering the top AER of 4.62%.
For four and five-year fixes, UBL UK takes the lead with an AERs of 4.54% and 4.64%, respectively.
Top 7 Cash ISAs
According to Ms. Eastell, activity in Cash ISAs has been more varied, with most fixed-rate deals increasing slightly, typically by 0.03%.
She said: “Savers looking to maximise their tax-free investments may wish to consider locking in for the longer-term as the top five-year fixed rate ISA beats its one-year counterpart.
“Additionally, this may benefit savers in the long-run as they can avoid the impacts of interest rate cuts and inflationary pressures for longer. Savers also have the option of opening multiple ISAs within the same tax year on the condition their overall annual ISA allowance is not breached.”
According to Moneyfacts, here are top Cash ISAs for each sector at the time of writing.
For easy access ISAs, Moneybox offers the top AER of 4.92%.
For notice ISAs, West Brom Building Society offers an AER of 4.60% on its 60-day account.
In the one-year fixed rate ISA sector, Castle Trust Bank places top with an AER of 4.52%.
For two-year fixed ISAs, Hodge Bank offers an AER of 4.40%.
For three, four and five year fixes, UBL UK offers the top AERs of 4.55%, 4.3%, and 4.53% respectively.
Ms Eastell continued: “Providers may be launching the final push towards meeting their end-of-year targets, so it is possible that further rate adjustments are yet to take place.
“Savers should avoid waiting to pull the trigger on any enticing deals until the new year to avoid disappointment.”
She added: “In any case, savers should consider their personal circumstances and the conditions of any account before opening but, if they are in doubt, seek advice.”
