Savers urged ‘to consider’ inflation-busting accounts amid interest rate cuts

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Savings accounts are still offering interest rates higher than the rate of inflation

Savers are being urged “to consider” inflation-busting high interest accounts before high street banks and building societies remove them from the marketplace.

Savings interest rates have been on the rise over the past year following the Bank of England’s consecutive hikes to the base rate.

Earlier today, the Office for National Statistics (ONS) confirmed that the Consumer Price Index (CPI) inflation rate for January 2024 remained at four per cent for the second month in a row, meaning there are still inflation-beating options available.

In recent weeks, financial institutions such as Nationwide have begun to reduce the interest rates of popular savings accounts as the market prices in potential cuts to the base rate later in the year.

According to Moneyfactscompare, here are the best savings account on the market today for deals at £10,000 gross:

Here are the best ISA accounts on the market today for deals at £10,000 gross, based on Moneyfactscompare’s research:

Rachel Springall, the finance expert at Moneyfactscompare.co.uk, said there are many favourable savings interest rates for Britons “to consider” despite recent rate reductions.

She explained: “Savers who prefer to lock their cash into a fixed rate bond or ISA for a guaranteed return will find more than half of the savings market can beat inflation, but they may be disappointed to see the top fixed rates have tumbled over the past month.

“Providers have been particularly active in this space due to the ongoing uncertainties surrounding future rate expectations.

“Challenger banks which sit towards the top end of the fixed bond market have had to adjust their market positions and will likely keep a close eye on their margins compared to their peers in the coming weeks.”