Compare savings accounts
Find the right savings account for you using the service provided by Experian Ltd
Compare and chooseBy clicking a retailer link you consent to third-party cookies that track your onward journey. This enables W? to receive an affiliate commission if you make a purchase, which supports our mission to be the UK's consumer champion.
Inflation falls to 2.6% – how to find the best savings account
A drop in the price of fuel has pushed down the CPI figure
The latest figures from the Office for National Statistics (ONS) show that inflation as measured by the Consumer Price Index (CPI) dipped from 2.8% to 2.6% in March.
The ONS attributed the drop to several factors, including a decrease in the price of fuel and static food prices compared to February.
Read on to find out more about why inflation has fallen, and which savings accounts and cash Isas offer inflation-beating returns.
The best inflation-beating savings accounts
Using data from Moneyfacts, we've found that there around 100 more savings accounts that beat inflation than this time last month.
1,886 savings accounts (86% of all products) currently offer rates higher than 2.6%. This includes instant-access and variable-rate deals, fixed-rate bonds and Isas.
This table shows the top rates currently available on savings accounts, ordered by term.
| Instant access | Cahoot | 5% (a) | 61% | £1 | Internet | Monthly, yearly |
| Instant access cash Isa | RECOMMENDED PROVIDER Moneybox | 5.03% (b) | 83% | £500 | Internet, mobile app | Anniversary |
| One-year fixed rate | LHV Bank | 4.65% | n/a | £1,000 | Mobile app | On maturity |
| One-year cash Isa | Gatehouse Bank (s) | 4.35% | n/a | £1,000 | Internet | Monthly, on maturity |
| Two-year fixed rate | Cynergy Bank | 4.57% | n/a | £1,000 | Internet | Yearly |
| Two-year cash Isa | UBL UK | 4.26% | n/a | £2,000 | Branch, internet, mobile app, postal | Monthly, anniversary, on maturity |
| Three-year fixed rate | Cynergy Bank | 4.55% | n/a | £1,000 | Internet | Yearly |
Table notes: rates sourced from Moneyfacts on 16 April 2025. Provider customer score is based on savers' overall satisfaction with the brand and how likely they are to recommend it to others. n/a means sample size was too small for us to generate a provider score (a) Offers 5% AER up to £3,000 (b) Includes bonus rate of 1.03% for first 12 months (s) This is a Sharia-compliant product, and so offers an expected profit rate (EPR) as opposed to an annual equivalent rate (AER)
How savings track against inflation
It's important to choose an account with a rate above the current CPI figure. If the interest rate on your account is below inflation, your savings will effectively lose value over time.
This table shows how average savings rates have compared to inflation since August 2020, using data from Moneyfacts.
Average rates on one-year and longer-term bonds have beaten inflation since October 2023.
The average interest rate on an instant-access account remains above inflation, having been slightly below the CPI figure in January.
What's happening to savings rates?
Since the Bank of England base rate was cut to 4.5% in February, rates on instant-access savings accounts have gradually declined. The average rate fell from 2.9% in February to 2.76% at the start of April.
Expectations of the base rate falling slowly, with one or two further cuts this year, resulted in rates on fixed-rate accounts remaining stable in the first quarter of the year.
However, this has changed since President Trump's tariff announcements. Since last week, the top one-year fixed-rate cash Isa has fallen from 4.53% to 4.35%.
This is because the market now believes the base rate will fall more sharply than previously expected, with three or four cuts possible in the remainder of the year.
- Find out more: best savings accounts 2025
Why is inflation falling?
A fall in the price of fuel was the most significant factor behind the drop in inflation in March. The average price of petrol and diesel dropped by 1.6p per litre between February and March.
Compared to February, the price of food and non-alcoholic beverages remained static. A small drop in confectionery prices was offset by a slight increase in milk, cheese and eggs.
Despite the overall decline in inflation, clothing and footwear prices rose by 1.1% in the 12 months to March 2025. This increase is typical for March as spring clothing hits the shelves, although the ONS noted that this year's rise was 'relatively large, following an unusual fall in prices into February'.
This is the second consecutive month that inflation has fallen, bringing it closer to the Bank of England’s 2% target.
It’s important to remember that a drop in inflation doesn’t mean prices are falling. Instead, it means that the rate at which prices are rising is slowing.
