As the new tax-year approaches savers should use the limited time left to adopt a ‘use it or lose it’ approach to their cash ISA savings. Moneyfactscompare.co.uk reveals the top rate deals available to those searching for a competitive return.
- The Consumer Price Index (CPI) fell to 2.8% during February, from 3.0% in January.
· There are currently 1,575 savings accounts that beat inflation* (165 easy access, 176 notice accounts, 192 variable rate ISAs, 334 fixed rate ISAs and 708 fixed rate bonds).
- The Bank of England’s modal projection rate for inflation during Q1 2026 is 3.0%.
- In March 2024, there were 1,365 deals that could beat 3.4% (February 2024 CPI) and in March 2023, there were no deals that could beat 10.4% (February 2023).
Savings market analysis | ||||
| Top savings deals at £10,000 gross | 22-Mar-23 | 20-Mar-24 | 19-Feb-25 | Today |
| Easy access account | Chip – 3.35% | Ulster Bank – 5.20% | Principality BS – 4.70% | Atom bank – 4.65% |
| Notice account | Melton BS – 3.50% (180-day) | Hinckley & Rugby BS – 5.25% (180-day) | Vida Savings – 4.85% (95-day) | Oxbury Bank – 4.70% (90-day) |
| One-year fixed rate bond | Al Rayan Bank – 4.43%** | MBNA – 5.27% | ICICI Bank – 4.65% | Birmingham Bank – 4.67% |
| Two-year fixed rate bond | Al Rayan Bank – 4.55%** | Oxbury Bank – 5.11% | Secure Trust Bank – 4.61% | Birmingham Bank – 4.58% |
| Three-year fixed rate bond | Al Rayan Bank – 4.60%** | UBL UK – 4.85% (payable on maturity) | Secure Trust Bank– 4.63% | UBL UK– 4.61% (payable on maturity) |
| Four-year fixed rate bond | UBL UK – 4.53% (payable on maturity) | UBL UK – 4.54% (payable on maturity) | Oxbury Bank – 4.54% | UBL UK – 4.54% (payable on maturity) |
| Five-year fixed rate bond | UBL UK – 4.63% (payable on maturity) | UBL UK – 4.95% (payable on maturity) | UBL UK – 4.64% (payable on maturity) | UBL UK – 4.64% (payable on maturity) |
| **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 | 22-Mar-23 | 20-Mar-24 | 19-Feb-25 | Today |
| Easy access ISA | Cynergy Bank – 3.20% | Moneybox – 5.11% (includes bonus) | Moneybox – 5.00% (includes bonus) | Moneybox – 5.28% (includes bonus) |
| Notice ISA | Furness BS – 3.30% (45-day) | West Brom BS – 5.10% (60-day) | Tipton & Coseley – 4.65% (60-day) | Tipton & Coseley – 4.50% (60-day) |
| One-year fixed rate ISA | Santander – 4.15% | Virgin Money – 5.25% | Secure Trust Bank – 4.45% | Cynergy Bank – 4.55% |
| Two-year fixed rate ISA | Santander – 4.20% | UBL UK – 4.81% (payable on maturity) | Hodge Bank – 4.41% | Cynergy Bank – 4.44% |
| Three-year fixed rate ISA | UBL UK – 4.28% (payable on maturity) | UBL UK – 4.59% (payable on maturity) | UBL UK – 4.61% (payable on maturity) | UBL UK – 4.61% (payable on maturity) |
| Four-year fixed rate ISA | UBL UK – 4.37% (payable on maturity) | UBL UK – 4.30% (payable on maturity) | UBL UK – 4.30% (payable on maturity) | UBL UK – 4.30% (payable on maturity) |
| Five-year fixed rate ISA | UBL UK – 4.33% (payable on maturity) | UBL UK – 4.52% (payable on maturity) | UBL UK – 4.60% (payable on maturity) | UBL UK – 4.69% (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:
“Top rate reductions are prevalent, alongside a mixture of increases and a few holding firm, albeit with a slew of providers now taking market-leading positions. In the aftermath of last month’s base rate reduction, easy access rates ISAs have won out against reductions and have improved over the past month. The leading easy access ISA has risen by 0.28% and, although this could be attributed to the upcoming tax-year end, it is a positive sign for savers who need a bit more flexibility with their cash.
“The incentive of locking into a short-term fixed bond is lessening as the gap between the top one-year and five-year is just 0.03%. Savers expecting their five-year fixed bond to mature soon will be glad to see that current rates offer over double those that were available in March 2020. If they wish to maximise their savings potential, locking in for another five years may be an attractive choice, especially as uncertainty surrounding base rate reductions continues.
“With less than a fortnight to go until the new tax-year, providers would typically be improving their rates to boost competition. Savers now only have a limited time to utilise their remaining ISA allowance. The cash ISA limit will not be reduced to £4,000 in today’s upcoming Spring Statement, avoiding a major hit to savers. As inflation stands above the 2% target, easy access cash ISAs are losing money in real terms on average, but this should not deter savers from shopping around for better deals. Any future ISA reforms to encourage UK growth must avoid any undue risks that could discourage saving.”
Data note: Please note that these savings product numbers include deals that are available to UK residents (easy access accounts, notice accounts, fixed rate bonds, variable Cash ISAs and fixed Cash ISAs) and exclude regular savers, children’s savers, variable rate fixed term bonds or ISAs, JISAs and LISAs, based on a £10,000 deposit, gross rates. Higher rates may be available for other levels of deposit.
