There’s positive news for savers as many leading savings rates have witnessed increases, but they should act fast. Moneyfactscompare.co.uk reveals the top rate deals available to those searching for a competitive return.
- The Consumer Price Index (CPI) fell to 2.5% during December, from 2.6% in November.
· There are currently 1,597 savings accounts that beat inflation* (216 easy access, 181 notice accounts, 192 variable rate ISAs, 313 fixed rate ISAs and 695 fixed rate bonds).
- The Bank of England’s modal projection rate for inflation during Q4 2025 is 2.7%.
- In January 2024, there were 967 deals that could beat 4.0% (December 2023 CPI) and in January 2022, there were no deals that could beat 10.5% (December 2022 CPI).
Savings market analysis | ||||
Top savings deals at £10,000 gross | 18-Jan-23 | 17-Jan-24 | 18-Dec-24 | Today |
Easy access account | HSBC – 2.96% | Ulster Bank – 5.20% | Atom Bank – 4.75% | Chase – 4.89% |
Notice account | Hinckley & Rugby BS – 3.60% (120-day) | FirstSave – 5.40% (90-Day) | RCI Bank UK – 4.90% (95-day) | BLME – 4.85% (90-day) |
One-year fixed rate bond | Habib Bank Zurich plc – 4.33% | SmartSave – 5.31% | Al Rayan Bank (Raisin UK) – 4.80%** | Vida Savings – 4.77% |
Two-year fixed rate bond | FirstSave – 4.70% | Union Bank of India (UK) Ltd – 5.15% | Castle Trust Bank – 4.64% | Atom Bank – 4.70% |
Three-year fixed rate bond | Investec Bank plc (Raisin UK) – 4.71% (payable on maturity) | Al-Rayan Bank – 4.86%** | Hodge Bank – 4.62% | SmartSave – 4.62% |
Four-year fixed rate bond | UBL UK – 4.53% (payable on maturity) | Bank of Ceylon (UK) Ltd (Raisin UK) – 4.55% (payable on maturity) | UBL UK – 4.54% (payable on maturity) | UBL UK – 4.54% (payable on maturity) |
Five-year fixed rate bond | UBL UK – 4.63% (payable on maturity) | UBL UK – 4.64% (payable on maturity) | UBL UK – 4.64% (payable on maturity) | SmartSave – 4.78% |
**Islamic bank, pays an expected profit rate. Top rates exclude deals with restrictive criteria. Notice accounts exclude those over 180 days.Source: Moneyfactscompare.co.uk |
ISA market analysis | ||||
Top savings deals at £10,000 gross | 18-Jan-23 | 17-Jan-24 | 18-Dec-24 | Today |
Easy access ISA | Virgin Money – 3.00% | Moneybox – 5.09% (includes bonus) | Moneybox – 4.92% | Moneybox – 5.00% |
Notice ISA | Mansfield BS – 3.00% (180-day) | Chorley Building Society – 5.05% (150-day) | West Brom BS – 4.60% (60-day) | Tipton & Coseley – 4.65% (60-day) |
One-year fixed rate ISA | Barclays Bank – 4.00% | Virgin Money – 5.25% | Castle Trust Bank – 4.52% | United Trust Bank – 4.54% |
Two-year fixed rate ISA | Virgin Money – 4.11% | Close Brothers Savings – 4.75% | Hodge Bank – 4.40% | Castle Trust Bank – 4.43% |
Three-year fixed rate ISA | UBL UK – 4.43% (payable on maturity) | UBL UK – 4.61% (payable on maturity) | UBL UK – 4.55% (payable on maturity) | UBL UK – 4.56% (payable on maturity) |
Four-year fixed rate ISA | Gatehouse Bank – 4.20%** | UBL UK – 4.54% (payable on maturity) | UBL UK – 4.30% (payable on maturity) | UBL UK – 4.30% (payable on maturity) |
Five-year fixed rate ISA | Hinckley & Rugby BS – 4.25% | UBL UK – 4.64% (payable on maturity) | UBL UK – 4.53% (payable on maturity) | UBL UK – 4.54% (payable on maturity) |
**Islamic bank, pays an expected profit rate. Inflation announcement dates. Top rates exclude deals with restrictive criteria. Notice ISAs exclude those over 180 days.Source: Moneyfactscompare.co.uk |
Caitlyn Eastell, Spokesperson at Moneyfactscompare.co.uk, said:
“In the run-up to ISA season Cash ISAs have seen rate increases across the board, with the top four-year fixed ISA being the exception. It would be wise to assume that competition in this area could increase in the coming months as the new tax-year approaches. Savers who have not yet made the most out of their tax-free savings would be sensible to ensure that they use any remaining balances, otherwise they may lose out. Easy access ISAs pay as much as 5%, which is positive news for those looking to maximise their returns in the short-term. However, savers could feel locking away their cash may become a more appealing option especially as there are expectations for the Bank of England to reduce interest rates.
“Comparatively, the leading one-year fixed bond saw a small cut whereas the leading five-year bond increased since the previous inflation announcement, showcasing the shortening gap between shorter- and longer-term savings. But a long-lasting return to a more ‘traditional’ savings market remains in the distant future. Easy access accounts stand to be the most improved month-on-month, with the top rate observing a 0.14% rise. As a result, the margin between easy access and notice accounts is now only minor, so savers currently tied to a notice account may not be benefitting from higher cash returns compared to its instant access counterpart. It remains to be seen how long this will be the case.
“To avoid disappointment, savers would be wise to secure any enticing deals before they disappear. If consumers are unsure which account is best suited to their needs, they should seek independent advice in the first instance and carefully consider any opening restrictions.”