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Inflation-busting savings accounts: where can you earn up to 5%?
February's CPI rate stayed at 3%. What savings deals can beat it?
Matthew is an award-winning journalist, specialising in savings, tax and insurance.
The share of savings deals beating inflation climbed to 76% after February’s Consumer Price Index (CPI) stayed steady at 3%.
That's slightly more than last month, when our analysis found that 75% of savings accounts offered interest higher than inflation. 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 1,869 savings accounts (76% of all products) offering rates higher than February's 3% inflation rate. This includes variable-rate deals, fixed-rate bonds and cash Isas. That's up from last month's inflation announcement, when 75% of accounts beat the CPI figure.
Variable-rate products – such as instant-access accounts – have the worst rates overall, with just 51% of deals beating inflation.
The lion's share of inflation-busting deals are fixed-rate bonds, with 98% offering returns higher than the current CPI figure. For cash Isas, it's 77%.
The table shows the top rates currently available for instant-access, fixed-rate and cash Isa savings accounts, ordered by term.
| Instant access | Cahoot | 5% (a) | n/a | £1 | Internet | Monthly, yearly |
| Instant access cash Isa | Plum | 4.66% | 73% | £1 | Mobile app | Monthly |
| One-year fixed rate | Union Bank of India (UK) Ltd | 4.45% | n/a | £1,000 | Internet | On maturity |
| One-year fixed rate cash Isa | Hodge Bank | 4.36% | n/a | £1,000 | Internet | Monthly, on maturity |
| Two-year fixed rate | Market Harborough Building Society | 4.65% | n/a | £5,000 | Branch, internet | Monthly, yearly |
| Two-year fixed rate cash Isa | West Brom Building Society | 4.45% | n/a | £1 | Branch, internet | Monthly, yearly |
| Three-year fixed rate | Market Harborough Building Society | 4.75% | n/a | £5,000 | Branch, internet | Monthly, yearly |
| Three-year fixed rate cash Isa | West Brom Building Society | 4.4% | n/a | £1 | Branch, internet | Monthly, yearly |
| Four-year fixed rate | Cynergy Bank | 4.25% | n/a | £1,000 | Internet | Yearly |
| Four-year fixed rate cash Isa | UBL UK | 3.91% | n/a | £2,000 | Branch, internet, mobile app, postal | Monthly, quarterly, anniversary, on maturity |
| Five-year fixed rate | Hodge Bank | 4.51% | n/a | £1,000 | Internet | Monthly, yearly |
| Five-year fixed rate cash Isa | Hodge Bank | 4.44% | n/a | £1,000 | Internet | Monthly, anniversary |
Table notes: rates sourced from Moneyfacts on 25 March 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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Compare and chooseHow 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 February stood at 3.81% AER and 3.79%, respectively. Last month's average instant-access rate was 2.41%.
- 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. It's fallen six times since then, dropping to 3.75% in December 2025. It's currently held at that level.
Changes to the base rate are important because banks typically respond to a cut by reducing the interest paid on savings accounts.
Instant-access
Moneyfacts data shows a drop in interest offered by instant-access accounts, which pay variable rates and can be changed at short notice. The average instant-access rate dipped from 2.41% AER to 2.40% in the month to 1 March 2026.
There is now only one instant-access deal offering a rate as high as 5% AER: the Cahoot Sunny Day Saver. Even better, the account allows unlimited withdrawals and anyone can open it.
The downside is that the rate lasts for only 12 months, after which your money will be placed in a savings account paying 1% AER. Interest is also given only on deposits up to £3,000.
Savers with larger nest eggs will have to settle for the next-best rate of 4.5% AER from Chase. However, the product also comes with a few catches.
Not only will you have to open the provider's current account, but the headline rate also includes a bonus of 2%, fixed for 12 months. This means that after a year, interest will drop to a standard variable rate, which is currently just 2.5% AER.
The top rate for an instant-access account without restrictions or a bonus rate is 4.25% 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 slipped between February and March 2026. The average one-year rate fell from 3.81% AER to 3.79%. However, there was a slight uptick in rates for an account lasting more than 12 months - from 3.79% to 3.81%.
Longer-term bonds currently offer the best rates. Market Harborough Building Society's two-year deal pays 4.75%, compared with Union Bank's one-year bond, which pays 4.45%.
Cash Isas
Cash Isas currently allow you to save up to £20,000 tax-free annually.
The average rate for instant-access cash Isas has been steadily falling since the beginning of last year. In the month to 1 March 2026, however, it rose from 2.58% to 2.61%. That's likely down to providers boosting deals in the run-up to the new financial year.
There was little change to fixed deals, with the average one-year Isa offering 3.76% - the same as last month. Rates for Isas lasting more than 12 months saw a slight increase, from 3.75% to 3.76%.
- Find out more: best cash Isa rates 2026.
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The story is regularly updated with the latest inflation figures.
