Four in five savings accounts are now beating inflation, according to analysis from Moneyfactscompare.co.uk, even as the Consumer Price Index (CPI) rose to 2.9% in July from 2.6% in June.
There are currently 1,850 accounts paying above the CPI reading, up from 1,825 in June. The total spans 219 easy-access accounts, 178 notice accounts, 181 variable-rate ISAs, 406 fixed-rate ISAs and 866 fixed-rate bonds. A year ago, only 956 deals could beat the 3.8% CPI reading recorded in July 2025.
The Moneyfacts Average New Savings Rate, which tracks the mean interest rate offered across newly launched or currently on-sale savings products, stands at 3.61% gross, or 3.63% AER, as of 19 August 2026.
|
|
CPI |
Moneyfacts Average New Savings Rate |
Real return |
|
Jul-24 |
2.2% |
3.91% |
1.71% |
|
Oct-24 |
2.3% |
3.75% |
1.45% |
|
Jan-25 |
3.0% |
3.64% |
0.64% |
|
Apr-25 |
3.5% |
3.65% |
0.15% |
|
Jul-25 |
3.8% |
3.51% |
-0.29% |
|
Oct-25 |
3.6% |
3.44% |
-0.16% |
|
Jan-26 |
3.0% |
3.35% |
0.35% |
|
Apr-26 |
2.8% |
3.40% |
0.60% |
|
Jul-26 |
2.9% |
3.58% |
0.68% |
|
Moneyfacts Average New Savings Rate taken on a first-of-month basis. Gross rate £10k. |
|||
Caitlyn Eastell, personal finance analyst at Moneyfactscompare.co.uk, said:
"Savers may be feeling the squeeze as inflation is back on the rise, which means they will have to pay much closer attention to the rate their money is earning, as accounts paying below inflation will see the true value of their cash eroded. However, the good news is that savers are not short of options, with around four in five savings accounts currently paying above inflation.
"For someone with £10,000 in savings, the difference of a competitive rate is stark. In the top easy access account, savers could still be £210 better off once inflation is accounted for. On an average savings account, the real gain falls dramatically to just £73, but even this is preferable to an account paying 2%, which would leave the saver around £90 worse off in real terms."
|
£10,000 saved for one year |
||
|
Rate (AER) |
Interest |
Real gains after inflation |
|
Top easy-access savings account (5.00%) |
£500 |
+£210 |
|
Top easy-access ISA (4.61%) |
£461 |
+£171 |
|
Moneyfacts Average New Savings Rate (3.63%) |
£363 |
+£73 |
|
Below inflation savings (2.00%) |
£200 |
-£90 |
|
Top deals correct as at 18.8.26. Moneyfacts Average New Savings rate correct at the time of writing, based on £10K AER. |
||
A higher-rate taxpayer uses up their £500 Personal Savings Allowance with just £10,000 earning 5%. Further interest then becomes taxable. Eastell said this is where ISAs, despite their lower headline rates, could prove valuable.
"While a top easy-access ISA pays 4.61%, the key advantage is that savers can keep the full interest tax-free, delivering a real-term gain of £171," she said.
"With inflation expected to move even higher, savers should pay close attention to where their money is held rather than assuming their existing rate is doing enough."