As the cost-of-living crisis continues to squeeze household budgets, savers have been searching for ways to protect their cash from the ravages of high inflation. Fortunately, new data reveals that there are now over 1,400 savings accounts offering rates that exceed the current rate of inflation.
According to financial analysis firm Moneyfacts, there are 1,406 different savings products across the UK market that are paying an interest rate higher than the latest Consumer Prices Index (CPI) figure of 10.1%. This represents a significant increase from just a few months ago, when there were only around 10 such accounts available.
“Savers have faced a real battle to find a home for their money that can keep pace with soaring inflation,” said Rachel Springall, finance expert at Moneyfacts. “However, the tides are finally turning, with a growing number of providers raising their rates to offer a real return on deposits.”
The top-paying easy access account currently stands at 2.81% from Cynergy Bank, while the leading one-year fixed rate bond pays 4.60% from Shawbrook Bank. These rates are well above the current CPI figure, meaning savers can now generate a genuine return on their cash holdings.
“It’s encouraging to see savings providers stepping up to the plate and offering rates that can truly protect the purchasing power of people’s hard-earned money,” added Springall. “Savers should shop around to find the best deals, as the market is becoming increasingly competitive.”
The data from Moneyfacts also revealed that the average easy access rate has risen to 1.16%, up from just 0.18% a year ago. Similarly, the typical one-year fixed bond now pays 3.52%, compared to 0.63% in September 2021.
“Inflation has been a real thorn in the side for savers, but the tide does appear to be turning,” concluded Springall. “With over 1,400 inflation-beating accounts now available, there are plenty of options for those looking to make their money work harder.”
