Inflation is almost double the Bank of England’s target, and with most accounts falling behind, savers’ money risks losing value, Moneyfactscompare.co.uk analysis can reveal.
The Consumer Price Index (CPI) remained unchanged at 3.8% in September, the same as in August, while the Bank of England projects inflation to fall to 2.7% by the third quarter of 2026. The Moneyfacts Average Savings Rate currently stands at 3.44%, which is lower than the current rate of inflation, meaning many savers are seeing their money lose value in real terms.
However, there are still 978 savings accounts that beat inflation, including 75 easy access accounts, 89 notice accounts, 56 variable rate ISAs, 216 fixed rate ISAs, and 542 fixed rate bonds. This marks a decline from October 2024, when 1,731 deals outpaced inflation—then at 1.7%—but a notable improvement compared to October 2023, when no savings accounts could beat the 6.7% rate of inflation.
Caitlyn Eastell, Spokesperson at Moneyfactscompare.co.uk, said:
“Inflation is almost double the Bank of England’s 2% target, but despite continued pressure from the rising cost of living, the UK’s household savings ratio remains above 10%, which reflects continued caution among consumers. Savers’ main priority is to build financial security and with average real returns remaining negative, they may find that the value of their savings is steadily being eroded, making it harder to achieve their financial goals or maintain essential safety nets such as emergency funds. Even the most competitive rates are struggling to outpace inflation, with less than half able to keep ahead of rising prices.
“Although some of the best rates have risen over the past month, it’s a short reprieve, as over the past year the vast majority have fallen, which means savers who re-invested £10,000 could now be almost £100 worse off.
“With the number of inflation-beating deals wavering, any saver who finds their account falling behind inflation, should immediately switch to a more attractive deal, or consider locking into a fixed bond to secure guaranteed returns on their hard-earned cash.”
| Savings market analysis | ||||
| Top savings deals at £10,000 gross | 18-Oct-23 | 16-Oct-24 | 17-Sep-25 | Today |
| Easy access account | Chorley Building Society – 5.30% | Ulster Bank – 5.20% | Chip – 4.70% (includes bonus) | Sidekick – 4.43% (includes bonus) |
| Notice account | RCI Bank UK – 5.60% (95-day) | Charter Savings Bank– 5.13% (95-day) | Earl Shilton BS – 4.50% (180-Day, includes bonus) | Earl Shilton BS – 4.50% (180-Day, includes bonus) |
| One-year fixed rate bond | Union Bank of India (UK) Ltd – 6.11% | Union Bank of India (UK) Ltd – 5.00% | Chetwood Bank – 4.45% | Marcus by Goldman Sachs® – 4.55% |
| Two-year fixed rate bond | Union Bank of India (UK) Ltd – 6.05% | Market Harborough BS – 4.61% | Birmingham Bank – 4.44% | JN Bank – 4.42% |
| Three-year fixed rate bond | JN Bank – 5.97% | UBL UK – 4.72% (payable on maturity) | Birmingham Bank – 4.46% | DF Capital – 4.47% |
| Four-year fixed rate bond | JN Bank – 5.80% | UBL UK – 4.54% (payable on maturity) | UBL UK – 4.54% (payable on maturity) | UBL UK – 4.54% (payable on maturity) |
| Five-year fixed rate bond | JN Bank – 5.80% | UBL UK – 4.64% (payable on maturity) | UBL UK – 4.64% (payable on maturity) | UBL UK – 4.64% (payable on maturity) |
| Inflation announcement dates. 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-Oct-23 | 16-Oct-24 | 17-Sep-25 | Today |
| Easy access ISA | Chorley Building Society – 5.15% | Trading 212 – 4.97% | Plum – 4.32% (includes bonus) | Plum – 4.40% (includes bonus) |
| Notice ISA | The Stafford BS – 5.25% (60-day) | West Brom BS – 4.85% (60-day) | Aldermore – 4.16% (60 Day) | Tipton & Coseley BS 4.10% – (60 Day) |
| One-year fixed rate ISA | Virgin Money – 5.85% | Virgin Money – 4.61% | Tembo Money– 4.27% | Vida Savings– 4.28% |
| Two-year fixed rate ISA | NatWest – 5.65% | State Bank of India – 4.50% | Vida Savings – 4.22% | UBL UK – 4.25% (payable on maturity) |
| Three-year fixed rate ISA | Zopa – 5.37% | UBL UK – 4.50% (payable on maturity) | UBL UK – 4.37% (payable on maturity) | UBL UK – 4.29% (payable on maturity) |
| Four-year fixed rate ISA | UBL UK – 5.39% (payable on maturity) | UBL UK – 4.30% (payable on maturity) | UBL UK – 4.25% (payable on maturity) | UBL UK – 4.25% (payable on maturity) |
| Five-year fixed rate ISA | UBL UK – 5.54% (payable on maturity) | UBL UK – 4.45% (payable on maturity) | UBL UK – 4.59% (payable on maturity) | UBL UK – 4.59% (payable on maturity) |
| Inflation announcement dates. Top rates exclude deals with restrictive criteria. Notice ISAs exclude those over 180 days.Source: Moneyfactscompare.co.uk | ||||
*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.
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