Inflation-beating bank savings accounts offered for first time in years

Savers now have a choice of cash savings accounts that beat inflation – for the first time in more than two years.

The Consumer Price Index (CPI) eased to 4.6% during October, from 6.7% in September, according to the Office for National Statistics (ONS).

Financial information website said the dip means there are now some standard cash savings accounts that beat inflation – the first time this has happened since May 2021.

It counted 56 easy access accounts, 86 notice accounts, 46 variable-rate Isas, 215 fixed-rate Isas and 489 fixed-rate bonds.

Highlighting some deals, based on someone having £10,000 to put away, Moneyfacts noted a 5.20% easy access account from Ulster Bank, a notice account from Shawbrook Bank paying 5.56%, and a one-year fixed-rate bond from Metro Bank at 5.91%.

Looking at cash Isas, Virgin Money is offering a one-year fixed-rate at 5.85%.

The eroding impact of high inflation has previously meant the value of savings pots has been shrinking – but with rates available that now beat inflation, savers can find accounts where the value of their money will be growing in real terms.

Savers should make sure they shop around to find the best deals and check what rate they are on – as they could still be sitting on a product that does not beat inflation.

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Rachel Springall, a finance expert at, said: “It has taken over two years, but finally inflation has fallen to a level where there are now some standard savings accounts that can outpace its eroding prowess.

“The savings market has felt a few rate cuts since last month’s inflation announcement, with fixed-rate bonds under the spotlight. Savers will no longer find a bond that pays more than 6%, but it is worth noting that challenger banks are still holding the top spots despite shuffling positions.

“These institutions can launch enticing offers to attract deposits for their future lending, but they also act quickly to pull offers when they become fully subscribed. Consumers will need to act quickly to grab the top deals on offer and consider the more unfamiliar brands when comparing deals.

“The incentive to switch remains for those savers with flexible pots, as many of the top rate deals that pay 5% or more for new customers do not come from the biggest high street bank brands. It’s simple and easy to switch, but savers must check the terms of any new account carefully, such as those with withdrawal restrictions or introductory bonus rates.

“To take full advantage of the best deals, it’s worth spreading any investment across easy access accounts and fixed bonds, but there are also notice accounts to consider which currently pay competitive rates.

“As we edge closer to the end of the year, consumers may well be thinking about spending rather than saving, but it’s still a good time to set up a nest egg to fall back on, just in case.”

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