Savers are being urged “to consider” inflation-busting high interest accounts before high street banks and building societies remove them from the marketplace.
Savings interest rates have been on the rise over the past year following the Bank of England’s consecutive hikes to the base rate.
Earlier today, the Office for National Statistics (ONS) confirmed that the Consumer Price Index (CPI) inflation rate for January 2024 remained at four per cent for the second month in a row, meaning there are still inflation-beating options available.
In recent weeks, financial institutions such as Nationwide have begun to reduce the interest rates of popular savings accounts as the market prices in potential cuts to the base rate later in the year.
Do you have a money story you’d like to share? Get in touch by emailing money@gbnews.uk.
Savings interest rates are still continuing to beat inflation despite recent cuts
GETTY
According to Moneyfactscompare, here are the best savings account on the market today for deals at £10,000 gross:
- Easy access account: Ulster Bank – 5.20 per cent
- Notice account: Vanquis Bank – 5.40 per cent
- One-year fixed rate bond: SmartSave – 5.21 per cent
- Two-year fixed rate bond: IFAST Global Bank – 5.10 per cent
- Three-year fixed rate bond: UBL UK – 4.72 per cent
- Four-year fixed rate bond: UBL UK – 4.54 per cent
- Five-year fixed rate bond: UBL UK – 4.77 per cent.
Here are the best ISA accounts on the market today for deals at £10,000 gross, based on Moneyfactscompare’s research:
- Easy access ISA: Moneybox – 5.09 per cent
- Notice ISA: West Brom Building Society – 5.06 per cent
- One-year fixed rate ISA: Virgin Money – 5.25 per cent
- Two-year fixed rate ISA: UBL UK – 4.72 per cent
- Three-year fixed rate ISA: UBL UK – 4.54 per cent
- Four-year fixed rate ISA: UBL UK – 4.30 per cent
- Five-year fixed rate ISA: UBL UK – 4.52 per cent.
LATEST DEVELOPMENTS:
The Bank of England has held the base rate at 5.25 per cent since August 2023 GB NEWSRachel Springall, the finance expert at Moneyfactscompare.co.uk, said there are many favourable savings interest rates for Britons “to consider” despite recent rate reductions.
She explained: “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.
“Providers have been particularly active in this space due to the ongoing uncertainties surrounding future rate expectations.
“Challenger banks which sit towards the top end of the fixed bond market have had to adjust their market positions and will likely keep a close eye on their margins compared to their peers in the coming weeks.”