19th February 2021

Moneyfacts says inflation erosion on savings accounts intensifies

The number of inflation-beating accounts on the UK savings market has fallen month-on-month and there has been a rise in inflation. The latest analysis from Moneyfacts.co.uk reveals the options available to savers to beat the current level of inflation today:

-The Consumer Price Index (CPI) rose to 0.7% during January, from 0.6% in December.
-The number of deals able to outpace inflation has fallen since last month’s announcement, due to a rise in inflation of 0.10%, from 157 in total that beat 0.6%, to 100 today that beat 0.7%.
-Standard savings accounts that can now match or beat inflation(0.7%) include: two easy access accounts, two notice accounts, two variable rate cash ISAs, 24 fixed rate ISAs and 92 fixed rate bonds(based on a £10,000 deposit).
-Standard savings accounts that beat 0.7% include: two easy access accounts, two notice accounts, one variable rate ISA, 17 fixed rate ISAs and 78 fixed rate bonds.
-The predicted rate for inflation during Q1 2022 is 2.1%, but there are no standard savings accounts currently able to beat this.
-In February 2020, 21 deals(all fixed rate bonds) could beat 1.8%(January CPI) and in February 2019, 194 deals(158 fixed bonds, 30 fixed ISAs and six notice accounts) could outpace 1.8% (January CPI).

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