The best inflation-beating savings accounts

With the news yesterday that inflation dropped to 1.5% in October, savers will be pleased to see that there are now more inflation-beating accounts available on the market. In fact, in November 2018, just 20 savings accounts – all of which were fixed rate bonds – could beat the then inflation rate of 2.4%, whereas today 199 fixed rate bonds, 50 fixed rate ISAs and 18 notice accounts can either match or beat the current inflation rate.

Here we’ve taken a look at the best inflation-beating savings accounts currently available on the market.

UBL UK currently offers the best inflation-beating rate with its 5 Year Fixed Term Deposit paying 2.47% gross on maturity. This account requires a £2,000 deposit to open and can be opened and managed in branch and by post. There is also a version of this account that pays 2.36% gross on anniversary, as well as a version that pays 2.33% gross monthly.

The two year bond that currently offers the best inflation-beating rate is Bank of London and The Middle East’s (BLME) Premier Deposit Account. This account pays an expected profit rate of 2.10% gross, which is paid on anniversary. The account requires an opening minimum deposit of £1,000. It must be opened online and then managed by post.

Savers looking for a one year bond will find that BLME also offers the best inflation-beating rate for this term. The one-year version of its Premier Deposit Account pays an expected profit rate of 1.85% gross on maturity. It requires an opening minimum deposit of £1,000 and can only be opened online and then managed by post.

Those looking for an ISA will find that UBL UK offers the best inflation-beating rate with its 5 Year Fixed Rate Cash ISA paying 2.09% gross on maturity. This ISA requires an opening minimum deposit of £2,000 and can be opened in branch or by post before becoming purely postal-operated. There is also a version of this ISA that pays interest on anniversary at 2.01% gross, one paying interest quarterly at 2.00% gross and a version that pays interest monthly at 1.99% gross.

Savers wanting a two year fixed ISA will currently get the best rate from Al Rayan Bank’s Fixed Term Deposit Cash ISA. This ISA pays an expected profit rate of 1.80% gross quarterly. It requires an opening minimum deposit of £1,000 and can be both opened and managed online, in branch, by post, by phone and via its mobile app.

The best inflation-beating rate available on a one year fixed ISA also comes from Al Rayan Bank. The one-year version of its Fixed Term Deposit Cash ISA pays an expected profit rate of 1.60% gross. It pays profit quarterly and requires £1,000 to open. It can be opened and managed online, in branch, by post, by phone and via its mobile app.

Within the notice account chart, Gatehouse Bank offers the best inflation-beating rate. Its 120 Day Notice Account pays an expected profit rate of 1.82% gross, which is paid on anniversary. This account requires a minimum opening deposit of £1,000 and can only be opened and managed online. There is also a version of this account that pays profit monthly at a slightly lower expected profit rate of 1.80% gross.