Number of inflation-beating savings accounts falls | will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by will always be from Be Scamsmart.

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Derin Clark

Derin Clark

Online Reporter
Published: 18/12/2019

Consumers looking to deposit their money into a savings account will be disappointed with the news that as the Consumer Price Index (CPI) has remained at 1.5% during November and savings account rates were cut this month, fewer savings accounts now offer inflation-beating rates.

According to research carried out by, there are now 171 fixed rate bonds, 41 fixed rate ISAs and nine notice accounts (based on a £10,000 deposit) can now match or beat inflation*. Within that, 145 fixed bonds, 30 fixed ISAs and six notice accounts pay more than 1.5%.

Savings market analysis 

Top savings deals at £10,000 gross 12 Dec 2017 19 Dec 2018 Today
Easy access account Virgin Money - 1.36% Virgin Money - 1.50% Shawbrook Bank - 1.41%
Notice account Secure Trust Bank - 1.65% (180-day) Gatehouse Bank - 1.87% (180-day)** United Trust Bank – 1.75% (200-day)
One-year fixed rate bond Atom Bank – 1.85% Gatehouse Bank – 2.10%** BLME – 1.80%**
Two-year fixed rate bond Secure Trust Bank – 2.06% Masthaven Bank – 2.35% BLME – 1.95%**
Three-year fixed rate bond Atom Bank – 2.20% Tandem Bank – 2.40% BLME – 2.10%**

Four-year fixed rate bond

Masthaven Bank – 2.23% Vanquis Bank – 2.50% BLME – 2.10%**
Five-year fixed rate bond Secure Trust Bank – 2.51% Atom Bank – 2.70% UBL UK – 2.50% (payable on maturity)

**Islamic bank, pays an expected profit rate. Inflation announcement dates.

Rachel Springall, finance expert at, said: “Savers looking to earn a decent return on their nest egg will still need to search for a savings account that beats inflation, and if they want quick access to their cash – it will be eroded in real terms today.

“There is still not one easy access account on the market that beats 1.50% – in fact, over the past month rates have been cut on these popular accounts. The leading easy access deal from Marcus by Goldman Sach® was chopped down from 1.44% gross / 1.45% AER to 1.34% gross / 1.35% AER today. Those who are prepared to invest for one year or more will find that rates have fallen drastically during 2019. Rates are on a downward trajectory due to economic uncertainties and a slowdown in competition.

“Savers hoping to get a decent fixed return over the next year on a one-year fixed bond will find the top deal pays less than 2% today, at 1.80% as an expected profit rate from BLME. This is 0.30% less than the top deal a year ago, so anyone coming off the then chart-topping expected profit rate of 2.10% from Gatehouse Bank will feel disappointed to not find a similar return for the same duration on the market today.

“Inflation is expected to rise in the coming years, with the CPI in Q4 2022 predicted to hit 2.2%, so if savers wanted to outpace this today, they only have one five-year fixed rate bond with which to do so – an account from UBL UK that pays 2.50% on maturity. Locking into a five-year fixed savings account may be a commitment that may not sit well for some savers who hope the savings market will improve in 2020.”


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