More than 1,300 inflation-beating cash savings accounts available
In April 2023 there were no cash savings deals that could beat the March rate of inflation in that year, Moneyfactscompare.co.uk said.
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Savers now have a choice of more than 1,300 cash accounts to beat inflation – compared with none a year ago – according to analysis by a financial information website.
Moneyfactscompare.co.uk 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% in March, slowing from 3.4% in February.
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
In April 2023, there were no cash savings deals that could beat the inflation rate of 10.1% 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%, but at the start of 2024, the top rate paid 5.50%.
“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.