The 12 inflation-beating savings accounts

Published by Rebecca Rutt on 17 May 2011.
Last updated on 13 January 2012

pound coins

The official measure of UK inflation remains high at 4.4% - over twice the levels of the government's 2% target.

Meanwhile, the retail prices index (RPI), which includes council tax and mortgage payments, has stayed at 5%.

High inflation means there are now only 12 accounts available if you are looking for an account that gives a return.

Basic rate taxpayers can choose from eight accounts that negate the effects of tax and inflation, all of which are fixed-rate ISAs.

However, there are only three accounts available that beat Retail Price Index at 5.00%.

THE INFLATION BEATERS

PROVIDER ACCOUNT RATE TERM

MINIMUM 

INVESTMENT

Chelsea BS Combination Fixed Rate ISA 5.00% 30.9.12 £1,000*
Yorkshire BS Combination Fixed Rate ISA 5.00% 30.9.12 £1,000*
Barnsley BS Combination Fixed Rate ISA 5.00% 30.9.12 £1,000*
Birmingham Midshires Five Year Fixed Rate ISA 4.65% Five years £500
Clydesdale Bank Cash ISA Fixed Rate Bond Issue 11 4.50% 29.4.16 £2,000
Yorkshire Bank Cash ISA Fixed Rate Bond Issue 11 4.50% 29.4.16 £2,000
Principality BS ISA Builder five-Year Plan 4.50% Five years £5,340*
United Trust Bank Five Year Fixed Cash ISA 4.45% Five years £5,340

* Savers must invest at least 70% of total investment in an Aviva investment product.

Source: Moneyfacts.co.uk 15.8.11

Along with these accounts there are a further four inflation-linked accounts

INFLATION-LINKED ACCOUNTS (LISTED ALPHABETICALLY)

PROVIDER ACCOUNT RATE TERM

MINIMUM

INVESTMENT

Cambridge BS Inflation Linked Bond 1.00% plus RPI 16.9.16 £5,000
Post Office Inflation Linked Bond Issue 2 0.50% plus RPI 10.10.14 £500
Post Office Inflation Linked Bond Issue 2 1.50% plus RPI 11.10.16 £500
Santander Inflation Linked Bond Issue 4 110% of the growth in the Retail Prices Index, or a guaranteed minimum return of 12%, plus original investment returned 1.4.17 £1

Source: Moneyfacts.co.uk 15.8.11

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