Savers face pressure as average returns stay negative

Caitlyn Eastell, Apprentice Press & PR Assistant

Caitlyn Eastell, Press & PR Executive 01603 476169 Email Caitlyn

Savers face pressure as average returns stay negative

Many of the top savings rates are struggling to outpace inflation, earning less than 1% in real returns, Moneyfactscompare.co.uk analysis can reveal.

Savers face pressure as average returns stay negative

Many of the top savings rates are struggling to outpace inflation, earning less than 1% in real returns, Moneyfactscompare.co.uk analysis can reveal.

The Consumer Price Index (CPI) remained at 3.8% during August, from 3.8% in July. The Bank of England’s projection rate for inflation during Q3 2026 is 2.7%.
The Moneyfacts Average Savings Rate currently sits at 3.45%, which is lower than inflation, so it is essential that savers shop around to avoid losing money in real terms.
There are currently 976 savings accounts that beat inflation* (82 easy access, 88 notice accounts, 64 variable rate ISAs, 216 fixed rate ISAs and 526 fixed rate bonds).
In September 2024, there were 1,606 deals that could beat CPI which was then at 2.2% (August 2024) and in September 2023, there were no deals that could beat CPI which was at 6.7% (August 2023).

The Consumer Price Index (CPI) remained at 3.8% during August, from 3.8% in July. The Bank of England’s projection rate for inflation during Q3 2026 is 2.7%.
The Moneyfacts Average Savings Rate currently sits at 3.45%, which is lower than inflation, so it is essential that savers shop around to avoid losing money in real terms.
There are currently 976 savings accounts that beat inflation* (82 easy access, 88 notice accounts, 64 variable rate ISAs, 216 fixed rate ISAs and 526 fixed rate bonds).
In September 2024, there were 1,606 deals that could beat CPI which was then at 2.2% (August 2024) and in September 2023, there were no deals that could beat CPI which was at 6.7% (August 2023).

Caitlyn Eastell, Spokesperson at Moneyfactscompare.co.uk, said:

“Sticky inflation will no doubt leave many savers disheartened, as the Moneyfacts Average Savings rate shows real returns remain in the negatives for the third consecutive month. Even the market-leading rates leave savers earning less than 1% in real terms, £1 saved in 2020 is now worth just £0.89. Despite this, savers can still choose from hundreds of inflation and base rate-beating deals, but they would be wise to act quickly as this number could fluctuate because of dropping rates and unpredictable inflation.

“Typically, more attractive returns are offered to savers willing to lock their cash away for longer. Depending on their specific savings goal, this may not be for everyone. With the future of further base rate cuts being uncertain some savers may be willing to risk a shorter term so they can access their money sooner. However, if savers stash away £10,000 today, in five years’ time it will have earned over £2,500, based on the top five-year fixed bond or ISA, but the same cannot be said for shorter terms, especially if rates fall further.

“Savers may be put off by the current conditions of the market but leaving their cash languishing in an account paying 3.8% or less could leave them significantly worse off so it is always worth searching for a more competitive deal.”

Caitlyn Eastell, Spokesperson at Moneyfactscompare.co.uk, said:

Savings market analysis
Top savings deals at £10,000 gross	20-Sep-23	18-Sep-24	20-Aug-25	Today
Easy access account	Paragon Bank – 5.05%	Ulster Bank – 5.20%	Chip – 4.74% (includes bonus)	Chip – 4.70% (includes bonus)
Notice account	RCI Bank UK – 5.60% (95-day)	DF Capital – 5.13% (90-day)	The Stafford BS – 4.61% (180-Day)	Earl Shilton BS – 4.50% (180-Day, includes bonus)
One-year fixed rate bond	National Savings & Investments – 6.20%	Mizrahi Tefahot Bank Ltd– 5.00%	JN Bank – 4.43%	Chetwood Bank – 4.45%
Two-year fixed rate bond	Ford Money – 6.05%	Ziraat Bank (Raisin UK) – 4.83%	JN Bank – 4.45%	Birmingham Bank – 4.44%
Three-year fixed rate bond	BLME – 6.00%**	UBL UK – 4.72% (payable on maturity)	JN Bank – 4.45%	Birmingham Bank – 4.46%
Four-year fixed rate bond	Hampshire Trust Bank – 5.85%	UBL UK – 4.54% (payable on maturity)	UBL UK – 4.54% (payable on maturity)	UBL UK – 4.54% (payable on maturity)
Five-year fixed rate bond	Tandem Bank – 5.85%	UBL UK – 4.64% (payable on maturity)	UBL UK – 4.64% (payable on maturity)	UBL UK – 4.64% (payable on maturity)
**Islamic bank, pays an expected profit rate. Inflation announcement dates. Top rates exclude deals with restrictive criteria. Notice accounts exclude those over 180 days. Source: Moneyfactscompare.co.uk

ISA market analysis
Top savings deals at £10,000 gross	20-Sep-23	18-Sep-24	20-Aug-25	Today
Easy access ISA	Moneybox – 4.75%	Trading 212 – 4.93%	Chip – 4.60% (includes bonus)	Plum – 4.32% (includes bonus)
Notice ISA	Teachers BS – 5.00% (180-day)	West Brom BS – 4.85% (60-day)	The Stafford BS – 4.35% (60 Day)	Aldermore – 4.16% (60 Day)
One-year fixed rate ISA	Virgin Money – 5.85%	Punjab National Bank (International) Ltd – 4.80%	Vida Savings – 4.31%	Tembo Money– 4.27%
Two-year fixed rate ISA	Kent Reliance – 5.79%	UBL UK – 4.51% (payable on maturity)	Shawbrook Bank – 4.21%	Vida Savings – 4.22%
Three-year fixed rate ISA	Secure Trust Bank – 5.60%	UBL UK – 4.50% (payable on maturity)	UBL UK – 4.37% (payable on maturity)	UBL UK – 4.37% (payable on maturity)
Four-year fixed rate ISA	UBL UK – 5.39% (payable on maturity)	UBL UK – 4.30% (payable on maturity)	UBL UK – 4.25% (payable on maturity)	UBL UK – 4.25% (payable on maturity)
Five-year fixed rate ISA	UBL UK – 5.54% (payable on maturity)	UBL UK – 4.45% (payable on maturity)	UBL UK – 4.59% (payable on maturity)	UBL UK – 4.59% (payable on maturity)
Inflation announcement dates. Top rates exclude deals with restrictive criteria. Notice ISAs exclude those over 180 days. Source: Moneyfactscompare.co.uk

*Data note: Please note that these savings product numbers include deals that are available to UK residents (easy access accounts, notice accounts, fixed rate bonds, variable Cash ISAs and fixed Cash ISAs) and exclude regular savers, children’s savers, variable rate fixed term bonds or ISAs, JISAs and LISAs, based on a £10,000 deposit, gross rates. Higher rates may be available for other levels of deposit.

Savings market analysis
Top savings deals at £10,000 gross	20-Sep-23	18-Sep-24	20-Aug-25	Today
Easy access account	Paragon Bank – 5.05%	Ulster Bank – 5.20%	Chip – 4.74% (includes bonus)	Chip – 4.70% (includes bonus)
Notice account	RCI Bank UK – 5.60% (95-day)	DF Capital – 5.13% (90-day)	The Stafford BS – 4.61% (180-Day)	Earl Shilton BS – 4.50% (180-Day, includes bonus)
One-year fixed rate bond	National Savings & Investments – 6.20%	Mizrahi Tefahot Bank Ltd– 5.00%	JN Bank – 4.43%	Chetwood Bank – 4.45%
Two-year fixed rate bond	Ford Money – 6.05%	Ziraat Bank (Raisin UK) – 4.83%	JN Bank – 4.45%	Birmingham Bank – 4.44%
Three-year fixed rate bond	BLME – 6.00%**	UBL UK – 4.72% (payable on maturity)	JN Bank – 4.45%	Birmingham Bank – 4.46%
Four-year fixed rate bond	Hampshire Trust Bank – 5.85%	UBL UK – 4.54% (payable on maturity)	UBL UK – 4.54% (payable on maturity)	UBL UK – 4.54% (payable on maturity)
Five-year fixed rate bond	Tandem Bank – 5.85%	UBL UK – 4.64% (payable on maturity)	UBL UK – 4.64% (payable on maturity)	UBL UK – 4.64% (payable on maturity)
**Islamic bank, pays an expected profit rate. Inflation announcement dates. Top rates exclude deals with restrictive criteria. Notice accounts exclude those over 180 days. Source: Moneyfactscompare.co.uk

ISA market analysis
Top savings deals at £10,000 gross	20-Sep-23	18-Sep-24	20-Aug-25	Today
Easy access ISA	Moneybox – 4.75%	Trading 212 – 4.93%	Chip – 4.60% (includes bonus)	Plum – 4.32% (includes bonus)
Notice ISA	Teachers BS – 5.00% (180-day)	West Brom BS – 4.85% (60-day)	The Stafford BS – 4.35% (60 Day)	Aldermore – 4.16% (60 Day)
One-year fixed rate ISA	Virgin Money – 5.85%	Punjab National Bank (International) Ltd – 4.80%	Vida Savings – 4.31%	Tembo Money– 4.27%
Two-year fixed rate ISA	Kent Reliance – 5.79%	UBL UK – 4.51% (payable on maturity)	Shawbrook Bank – 4.21%	Vida Savings – 4.22%
Three-year fixed rate ISA	Secure Trust Bank – 5.60%	UBL UK – 4.50% (payable on maturity)	UBL UK – 4.37% (payable on maturity)	UBL UK – 4.37% (payable on maturity)
Four-year fixed rate ISA	UBL UK – 5.39% (payable on maturity)	UBL UK – 4.30% (payable on maturity)	UBL UK – 4.25% (payable on maturity)	UBL UK – 4.25% (payable on maturity)
Five-year fixed rate ISA	UBL UK – 5.54% (payable on maturity)	UBL UK – 4.45% (payable on maturity)	UBL UK – 4.59% (payable on maturity)	UBL UK – 4.59% (payable on maturity)
Inflation announcement dates. Top rates exclude deals with restrictive criteria. Notice ISAs exclude those over 180 days. Source: Moneyfactscompare.co.uk

Notes to editors

You are welcome to use part or all of this press release, so long as we are sufficiently sourced. We would appreciate a link back to Moneyfactscompare.co.uk.

Pioneering financial comparison technology for over 35 years, Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, banking, life, pension and investment products in the UK.

Moneyfactscompare.co.uk is the financial product price comparison site, launched as Moneyfacts.co.uk in 2000 and rebranded to Moneyfactscompare.co.uk in 2023, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfactscompare.co.uk shows whole of market data regardless of commercial bias, showing consumers a true picture of the best products based on the criteria they select.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

Notes to editors

You are welcome to use part or all of this press release, so long as we are sufficiently sourced. We would appreciate a link back to Moneyfactscompare.co.uk.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, banking, life, pension and investment products in the UK.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

If you're looking for extra comment, a chart or more information, then please give us a call. We are always more than happy to help.

Adam French Head of News & Communications

01603 476154

Email Adam

Rachel Springall Press Officer / Finance Expert

01603 476210

Email Rachel

Caitlyn Eastell Press & PR Executive