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17 Jun 2026

Inflation-busting savings accounts: where can you earn up to 5%?

May's CPI rate remained at 2.8%. What savings deals can beat it?

Matthew JenkinSenior writer

Matthew is an award-winning journalist, specialising in savings, tax and insurance.

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Four out of five savings deals offer interest higher than inflation after May’s Consumer Price Index (CPI) stayed at 2.8%.

That's important, because leaving your cash in an account paying less than the current rate of inflation means it's effectively losing value over time.

Read on to find out which accounts offer the best interest and what's happening to savings rates.

Which savings accounts beat inflation?

Our analysis of Moneyfacts data shows that there are currently 2,038 savings accounts (79% of all products) offering rates higher than May's 2.8% inflation rate. This includes variable-rate deals, fixed-rate bonds and cash Isas. That's the same share of savings deals as last month's inflation announcement.

Variable-rate products – such as instant-access accounts – have the worst rates overall: just 59% of deals beat inflation.

The lion's share of inflation-busting deals are fixed-rate bonds, 99% of which offer returns higher than the current CPI figure. For cash Isas, it's 80%.

The table shows the top rates currently available for instant-access, fixed-rate and cash Isa savings accounts, ordered by term.


Instant access	Cahoot	Cahoot Sunny Day Saver	5% (a)	n/a	£1	Internet	Monthly, yearly
Instant access cash Isa	Atom Bank	Easy Access Cash Isa	4.25%	76%	£0	Mobile app	Monthly
One-year fixed rate	MBNA	Fixed Saver 1 Year	4.85%	n/a	£1,000	Internet	On maturity
One-year fixed rate cash Isa	Investec Save	Fixed Rate Cash Isa	4.68%	n/a	£1,000	Internet	On maturity
Two-year fixed rate	West Brom Building Society	18 Month Fixed Rate Bond to 31/12/2027	4.90%	n/a	£1,000	Branch, internet	Monthly, yearly
Two-year fixed rate cash Isa	Castle Trust Bank	Fixed Rate e-Cash Isa	4.72%	n/a	£1,000	Internet, mobile app	On maturity
Three-year fixed rate	Afin Bank	3-Year Fixed Term Account	4.85%	n/a	£1,000	Mobile app	Yearly
Three-year fixed rate cash Isa	Castle Trust Bank	Fixed Rate e-Cash Isa	4.68%	n/a	£1,000	Internet, mobile app	On maturity
Four-year fixed rate	Thisbank	Fixed-Term Savings Account	4.82%	n/a	£100	Internet, mobile app	Yearly
Four-year fixed rate cash Isa	United Trust Bank	Cash Isa 4 Year Bond	4%	n/a	£5,000	Internet	Anniversary
Five-year fixed rate	Afin Bank	5-Year Fixed Term Account	4.90%	n/a	£1,000	Mobile app	Yearly
Five-year fixed rate cash Isa	Castle Trust Bank	Fixed Rate e-Cash Isa	4.72%	n/a	£1,000	Internet, mobile app	On maturity

Table notes: rates sourced from Moneyfacts on 17 June 2026 and based on a balance of £5,000. (a) The Sunny Day Saver account offers 5% AER on balances up to £3,000 for 12 months, after which funds transfer to a Cahoot Savings account at 1%.

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How savings rates track against inflation

If your rate is lower than inflation, your savings will lose value in real terms, so it's important to pick a savings account with an interest rate above the current CPI figure.

The graph shows how average savings rates compare with inflation since August 2020, using data from Moneyfacts:

As the graph shows, the average rate for a one-year and longer-term fixed bond in March stood at 4.05% AER and 4.08%, respectively. Last month's average instant-access rate was 2.47%.

Find out more: best savings accounts 2026.

What's happening to savings rates?

Savings rates have been declining since the Bank of England cut the base rate in August 2024, and it's fallen six times since then. It is currently held at 3.75%, but that could change when the next base rate decision is made on Thursday (18 June).

Changes to the base rate are important because banks typically respond to a cut by reducing the interest paid on savings accounts. But while savings rates had been steadily dropping for months, they are now climbing again.

That may be partly in response to providers second-guessing the impact the Middle East war will have on the UK economy.

Instant-access

Moneyfacts data shows a rise in interest offered by instant-access accounts, which pay variable rates and can be changed at short notice. The average instant-access rate climbed from 2.47% AER to 2.48% in the month to 1 June 2026.

There are now several instant-access deals offering rates as high as 5% AER. However, all of the top deals come with significant strings attached, such as limiting the product to existing customers only, offering temporary introductory rates, or imposing withdrawal limits.

The top deal for an instant-access account without restrictions or a bonus rate is Hampshire Trust Bank's Easy Access Online Saver, paying 4.24% AER.

Find out more: the different types of savings accounts explained.

Fixed-term

Locking your money away for a year or more could help to protect it if savings rates continue to fall, as fixed-term accounts guarantee your rate won’t drop during the term.

Rates also ticked up between May and June 2026. The average one-year rate rose from 4.05% AER to 4.19%. Rates for an account lasting more than 12 months also rose from 4.08% to 4.21%.

There is currently little difference between returns offered by short and long-term bonds. For example, MBNA's one-year deal pays a fraction more than Afin Bank's five-year account – 4.85% compared to 4.9%.

Cash Isas

Cash Isas currently allow you to save up to £20,000 tax-free annually. You'd expect to see rates dip in rates during the summer, as the excitement of the new tax year wanes. However, interest on fixed-rate Isa pots soared month-on-month.

The average rate for instant-access cash Isas dipped slightly from 2.76% AER to 2.74% between May and June. Fixed deals, on the other hand, have improved, with the average one-year Isa rising from 4.17% to 4.25%. Rates for Isas lasting more than 12 months increased from 4.14% to 4.22%.