Struggling savings market continues as inflation rises | 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: 19/02/2020

Today’s news that inflation has risen to 1.8% during January will cause more disappointment for savers who are already struggling to find competitive saving rates.

In fact, despite base rate remaining at 0.75% last month, rates on many top savings accounts have been cut since January. The latest research by has found that the top deals across easy access and fixed bonds with terms of between one to five years have dropped month-on-month, with the top five year bond now paying 0.40% less than the top deal last month. The only top non-ISA product to remain unchanged month-on-month was notice accounts.

With the announcement that the Consumer Price Index (CPI) increased to 1.8% during January, it means that the number of deals able to match or beat inflation has fallen dramatically over the month. Today just 31 savings accounts will match or beat inflation, all of which are fixed rate bonds. Of these 21 are able to beat 1.8%.

Savings market analysis 

Top savings deals at £10,000 13 Feb 2018 13 Feb 2019 15 Jan 2020 Today
Easy access account ICICI Bank UK - 1.34% ICICI Bank - 1.54% Gatehouse Bank - 1.40%** Virgin Money - 1.31%
Notice account Secure Trust Bank - 1.65% (180 day) Charter Savings Bank - 1.90% (95 day) BLME - 1.70% (90 day)** BLME - 1.70% (90 day)**
One year fixed rate bond Atom Bank - 1.95% BLME - 2.15%** BLME - 1.80%** Atom Bank - 1.65%
Two year fixed rate bond Atom Bank - 2.10% Al Rayan Bank - 2.40%** BLME - 1.95%** Atom Bank - 1.80%
Three year fixed rate bond Vanquis Bank - 2.22% Al Rayan Bank - 2.50%** BLME - 2.10%** FCMB Bank (UK) - 1.90%
Four year fixed rate bond Vanquis bank - 2.40% Vanquis Bank - 2.52% BLME - 2.10%** BLME - 1.95%**
Five year fixed rate bond  Secure Trust Bank - 2.46% BLME - 2.70%** UBL UK - 2.50% (payable on maturity) Gatehouse Bank - 2.10%**

**Islamic bank, pays an expected profit rate. 

Commenting on today’s inflation figures and what this means for savers, Rachel Springall, finance expert at, said: “Savings rates have continued on the downward spiral this month, as a lack of competition takes its toll. The top one year fixed rate bond in the market now pays 0.15% less than last month while the top five year rate pays 0.40% less.

“A year ago, savers would have found a top one year fixed bond paying 2.15%, but today not even the top five year fixed rate bond will pay this return. This could dishearten savers who may be coming off a one year fixed bond and are searching for an equivalent rate over a similar term.

“The latest inflation announcement may not be of concern to some savers looking to outpace its impact as it is below target, but it is expected to rise to 2.2% by Q4 2022. As it stands, there is not one fixed rate bond that can beat this rate.

“While savers escaped a base rate cut from the Bank of England this month, there is uncertainty as to whether this could be just around the corner or indeed later this year. Regardless of any change, it is vital that savers shop around as it is clear to see that speed is key to grab the most lucrative rates.”

*Data note: Please note that these savings product numbers only include deals that are available to all UK residents (no notice, notice, fixed rate bonds, variable or fixed ISAs) and excludes regular savers and children’s savers (this figure does not count each interest payment option for each account), based on a £10,000 deposit. Higher rates may be available for larger deposits.

Fixed rate bonds

To view all the inflation-beating fixed rate bonds currently available visit our fixed rate bonds charts.


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