Most savings accounts now being beaten by inflation as deals drop away

Fewer than half of available savings accounts are now paying above the rate of inflation, new analysis has revealed.
Research done by Moneyfactscompare.co.uk found that only 956 out of 2,004 accounts on the savings market are paying above the rate of inflation.

It was announced on Wednesday morning that the Consumer Price Index (CPI) rose to 3.8 per cent during July, from 3.6 per cent in June. The Bank of England’s projection rate for inflation during Q3 2026 is 2.7 per cent.

However, the Moneyfacts Average Savings Rate currently sits at 3.47 per cent, which is lower than current inflation levels.

According to the organisation’s research, there are 85 easy access, 86 notice accounts, 79 variable rate ISAs, 210 fixed rate ISAs and 496 fixed rate bond products on the market that beat inflation.

The figures represent a substantial fall on the number of inflation-beating accounts available last summer.

There are now 333 fewer savings accounts that can beat CPI at 3.8 per cent (July 2025) compared to August 2024, when there were 1,558 deals that could beat CPI which was then at 2.2 per cent (July 2024). 

Caitlyn Eastell, Spokesperson at Moneyfactscompare.co.uk, said savers should review their current deals and switch if they are earning less than 3.8 per cent.

“After almost a year and a half of savings growth, many savers are slipping back into earning negative real returns as inflation figures jump again,” she said.

"The Moneyfacts Average Savings Rate currently sits at 3.47 per cent, lower than the latest CPI reading of 3.8 per cent. Adding insult to injury, there are also hundreds fewer inflation-beating deals available compared to 12 months ago.

“With inflation running higher than the interest savings earn, money left languishing in a low-interest account is losing its spending power – making it tougher to achieve a sense of financial resilience or save towards goals such as a car, house or comfortable retirement."