Number of savings accounts that beat inflation trebles

18 April 2018

Savers will cheer the latest inflation figures, as the number of accounts beating inflation triples. Here are the Moneywise best buys.

Thanks to a Consumer Price Index inflation rate of 2.5%, options for savers to match or beat inflation have increased significantly. In an environment of low savings rates and high inflation, Moneywise has listed the number of accounts that beat inflation. This list has at times been as low as six accounts. Thanks to falling inflation, the number of accounts has now boomed to 21.

In fixed-term deposits, savers can now beat inflation using a fixed five-year account. Secure Trust Bank, United Bank UK and Vanquis Bank all now offer inflation-beating five-year fixed savings accounts, all with an interest rate of 2.65%.

Secure Trust Bank also offers longer-term accounts of six and seven years, with rates of 2.7% and 2.75% respectively.

Other five-year fixed saver providers that now match or beat inflation include PCF Bank (2.60% for five years and 2.75% for seven years), Close Brothers Savings (2.6%), Ikano Bank (2.52%) and  Hodge Bank (2.5%).

However, Kevin Doran, chief investment officer at AJ Bell, caveats this news: “The year-long pay squeeze may have ended with wages finally back on par with inflation in February but the fact is, any cash they hold in savings accounts continues to go backwards in real terms. 

“Inflation of 2.5% still comfortably outstrips the returns available from most cash accounts and so anyone with large amounts of cash savings really needs to think about other forms of investments if they want to preserve the spending power of their money."  

Regular Savers

Alternatively, there are several regular savers on the market that beat inflation. However these accounts require a current account with the provider to open. Moneywise current best buys include:

AccountInterest rate (AER)Savings limits (per month)
First Direct Regular Saver5%£25 - £300
Nationwide Flexclusive Regular Saver5%£1 - £250
HSBC Regular Saver5%£25 - £250
M&S Bank Monthly Saver5%£25 - £250
Santander 123 Regular eSaver5%£1 – £200

For a list of the latest savings accounts rates see our best buy page


In reply to by anonymous_stub (not verified)

When you are nearly 80, you don't wan to be looking at 5 to 6 yr terms to find a decent interest rate1 yr 2% would be wonderful. Oh for days gone past!!!!!

In reply to by Ray Phillips (not verified)

Just coming up to 80 now, and looking for a decent return on my meagre savings for immediate access, or no more than 12 month investment. Where, Oh where do I find it?

Add new comment