Choice of inflation-beating savings accounts down from 100 to none – research

Savers had 100 cash accounts to choose from to beat inflation a year ago but there are now none, according to a financial information website.

The Office for National Statistics (ONS) said Consumer Prices Index (CPI) inflation reached 5.5% in January, remaining at its highest level in nearly 30 years.

Moneyfacts.co.uk said that in February 2021 there were 100 deals, including Isas, easy access and notice accounts, and fixed-rate bonds, that could beat the January 2021 rate of inflation.

But there is not one standard cash savings account currently available that can outpace 5.5%, based on a £10,000 deposit, Moneyfacts said.

It is still worth trying to access the best rates available though, as this will help to offset the eroding impact of inflation to some extent.

Rachel Springall, a finance expert at Moneyfacts.co.uk, said: “Challenger banks and building societies dominate the top of the market both for variable and fixed rate deals, including Isas.

“Those savers who prefer to have their cash close to hand in an easy access account or easy access Isa may have noticed a few prominent deals surface in recent weeks, but some have already been pulled or cut.

“Aldermore had a market-leading 0.75% easy access account (Double Access Account) which was around for just a week, and Cynergy Bank opened its Online Isa to new customers but also cut its rate down from 0.65% to 0.60%.

“As it stands, Cynergy Bank and Investec Bank plc both lead the easy access market at 0.71% (Online Easy Access Account and Online Flexi Saver), and Paragon Bank launched a new easy access Isa (Triple Access Cash Isa) paying 0.65% last week which leads its sector.

“However, as we have seen before with challenger banks, the highest rates can get taken up very quickly. Savers would therefore be wise to act quickly or may be left disappointed. Signing up to newsletters and checking top rate tables regularly is wise to keep up with changes.”