Fresh competition means savers are encouraged to take advantage and secure the top deals. Moneyfactscompare.co.uk reveals the top rate deals available to those searching for a competitive return.
· There are currently 1,582 savings accounts that beat inflation* (209 easy access, 180 notice accounts, 184 variable rate ISAs, 314 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 December 2023, there were 1,127 deals that could beat 3.9% (November 2023 CPI) and in December 2022, there were no deals that could beat 10.7% (November 2022 CPI).
| Savings market analysis | ||||
| Top savings deals at £10,000 gross | 14-Dec-22 | 20-Dec-23 | 20-Nov-24 | Today |
| Easy access account | HSBC – 2.97% | Ulster Bank – 5.20% | Principality BS – 4.85% | Atom Bank – 4.75% |
| Notice account | Marsden BS – 3.85% (180-day) | Hampshire Trust Bank – 5.51% (95-day) | Charter Savings Bank– 5.06% (95-day) | RCI Bank UK – 4.90% (95-day) |
| One-year fixed rate bond | SmartSave – 4.32% | Metro Bank – 5.66% | Ahli United Bank (UK) plc (Raisin UK) – 4.80%** | Al Rayan Bank (Raisin UK) – 4.80%** |
| Two-year fixed rate bond | Melton BS – 4.75% | Union Bank of India (UK) Ltd –5.40% | SmartSave – 4.61% | Castle Trust Bank – 4.64% |
| Three-year fixed rate bond | Nottingham BS – 4.65% | Hanley Economic BS –5.35% | UBL UK – 4.61% (payable on maturity) | Hodge Bank – 4.62% |
| Four-year fixed rate bond | Gatehouse Bank – 4.65%** | UBL UK – 4.93% (payable on maturity) | UBL UK – 4.54% (payable on maturity) | UBL UK – 4.54% (payable on maturity) |
| Five-year fixed rate bond | Melton BS – 4.90% | UBL UK – 5.30% (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 | ||||
Caitlyn Eastell, Spokesperson at Moneyfactscompare.co.uk, said:
“Top deals across the fixed market have experienced minor fluctuations since the previous inflation announcement, bringing some welcome stability. Meanwhile, a handful of new providers have entered the scene, which is positive news in terms of competition and for savers willing to switch to challenger banks, who will have their own pricing strategies. Easy access rates were among those receiving the most notable cuts, seeing a 0.10% reduction, but this is unsurprising given last month’s cut to base rate; however, a slew of providers currently offer the top-paying rate. Savers would be wise to take advantage of a competitive savings market and seek the highest-paying deals.
“Cash ISAs have seen a more mixed bag of activity, with most fixed rate deals pushing in the upward trend by 0.03%. Savers looking to maximise their tax-free investments may wish to consider locking in for the longer-term as the top five-year fixed rate ISA beats its one-year counterpart. Additionally, this may benefit savers in the long-run as they can avoid the impacts of interest rate cuts and inflationary pressures for longer. Savers also have the option of opening multiple ISAs within the same tax year on the condition their overall annual ISA allowance is not breached.
“Providers may be launching the final push towards meeting their end-of-year targets, so it is possible that further rate adjustments are yet to take place. Savers should avoid waiting to pull the trigger on any enticing deals until the new year to avoid disappointment. In any case, savers should consider their personal circumstances and the conditions of any account before opening but, if they are in doubt, seek advice.”
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.
