People with money in a savings account are being urged to check they are not missing out on a better rate of return after analysis by Moneyfactscompare.co.uk found that there are now more than 1,300 inflation-beating accounts on the market. The best deals are offering 5 per cent, so if your hard-earned savings are languishing in an account paying less, now is the time to move them.
The financial information website found 1,364 savings accounts that beat inflation, including easy access and notice accounts, as well as ISAs and bonds. The Office for National Statistics (ONS) said on Wednesday that Consumer Prices Index inflation stood at 3.2 per cent in March, slowing from 3.4 per cent in February.
In April 2023, there were no cash savings deals that could beat the inflation rate of 10.1per cent in March that year, according to Moneyfacts’ records.
Rachel Springall, a finance expert at Moneyfactscompare.co.uk, said: “Savers will find a bit of volatility within the top rate tables since last month, so it’s essential to review their nest egg to ensure it’s still paying a competitive rate.
“Inflation eats away at savers’ hard-earned cash, so it’s worth keeping this in mind when comparing different savings accounts to ensure they are earning a decent real return.
“One area of the savings market to see another drop in the top rate is one-year fixed bonds. The best deals today are still paying over 5 per cent, but at the start of 2024, the top rate paid 5.50 per cent.
“Providers have been reducing fixed rates over recent months as expectations grew for future interest rates to come down. Thankfully, such volatility has calmed.”
She continued: “Switching accounts is essential for any saver who finds their loyalty is not being rewarded.
“Considering the more unfamiliar brands is wise but it’s important consumers take time to review any restrictive criteria an account can impose to ensure it works for them.”
Moneyfacts excluded some accounts from its analysis, including regular savers, children’s savers, variable rate fixed-term bonds or Isas, Junior Isas and Lifetime Isas.
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