Savers in Britain re being urged to "act swiftly" before high street banks and building societies begin to slash interest rates attached to "top" savings accounts.
This week, the Bank of England's Monetary Policy Committee (MPC) voted to keep the UK's base rate at 4.25 per cent, however analysts are pricing in more cuts in 2025.
Despite a year of rate cuts impacting returns, savers can still find 1,437 accounts offering rates above the current 3.4 per cent inflation level, according to data from Moneyfactscompare.co.uk.
The Consumer Price Index (CPI) inflation rate dropped to 3.4 per cent in May from 3.5 per cent in April, yet the savings market continues to provide competitive options across various account types.
Savers are seeing their accounts "hit" by inflation and interest rate cuts
GETTYThese inflation-beating deals include 133 easy access accounts, 122 notice accounts, 133 variable rate ISAs, 343 fixed rate ISAs and 706 fixed rate bonds.
This marks a significant shift from May 2023, when no savings accounts could match the then-inflation rate of 8.7 per cent.
"Challenger banks and app-based providers are rife among the top tables as competition continues to attract new customers," said Caitlyn Eastell, spokesperson at Moneyfactscompare.co.uk.
Since the previous inflation announcement, the best non-ISA deals have seen modest increases for variable and short-term fixed rates. The ISA market has performed even better, with most fixed ISA rates rising during the same period.
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Savers are losing money to interest rate cuts and inflation
GETTYLonger-term fixed rates have emerged as increasingly attractive options, with five-year deals now outperforming shorter-term alternatives.
"With longer-term rates out-pacing short-term deals it may be a good time for savers to consider the benefits of locking away their cash for the next five years," Eastell noted.
Eastell warned that savers must remain vigilant in their search for competitive rates.
"Consumers need to consistently search for the best accounts to avoid receiving a raw deal and act swiftly so they can grab the most popular deals before they are pulled or worsen," she said.
"Savers continue to be hit by the handful of base rate cuts over the past year as all the top rates for non-ISAs have dropped compared to the market-leaders in June 2024, so those consumers with a variable account or only fixed for a year may now be feeling the pressure."
Despite April seeing a record £14billion invested in ISAs according to Bank of England data, nearly £300 billion remains in non-interest-bearing accounts, missing out on attractive returns.
LATEST DEVELOPMENTS:
Interest rate have been cut by the Bank of England, impacting mortgage deals on offer GETTY Here is a full list of the top savings deal per account type available in the UK, according to Moneyfactscompare:
| Account Type | Today |
|---|---|
| Easy access account | Chase – 4.89 per cent (includes bonus) |
| Notice account | GB Bank – 4.68 per cent (120-Day) |
| One-year fixed rate bond | Cynergy Bank – 4.50 per cent (payable on maturity) |
| Two-year fixed rate bond | JN Bank – 4.42 per cent |
| Three-year fixed rate bond | JN Bank – 4.45 per cent |
| Four-year fixed rate bond | UBL UK – 4.54 per cent (payable on maturity) |
| Five-year fixed rate bond | UBL UK – 4.64 per cent (payable on maturity). |
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