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21 Oct 2026

Inflation-busting savings accounts: where can you earn more than 5%?

September's CPI rate rose to 3.5%. We reveal the savings accounts that can beat it

Matthew JenkinSenior writer

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

Ruby FlanaganSenior Content Producer

With a background in financial journalism across national titles, Ruby loves helping people take control of their money and specialises in pensions, tax, banking and benefits.

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The share of savings deals that beat inflation fell to 69% after September’s Consumer Price Index (CPI) climbed to 3.5%. That's down from 76% last month.

If your cash is in an account paying less than the current rate of inflation, it's effectively losing value over time, as prices increase faster than the value of your savings.

Here, we look at which accounts pay the most interest, and what's happening to savings rates.

Which savings accounts beat inflation?

Our analysis of Moneyfacts data shows that there are currently 1,859 savings accounts (69% of all products) offering rates higher than September's 3.5% inflation rate. These include variable-rate deals, fixed-rate bonds and cash Isas. That's down significantly from last month's inflation announcement, when 76% of accounts beat the CPI figure.

Variable-rate products, such as instant-access accounts, have the worst rates overall. Just 41% of these deals can beat inflation.

The lion's share of inflation-busting savings accounts are fixed-rate bonds, with 96% offering returns higher than the current CPI figure. For cash Isas, it's 71%.

The table shows the top rates 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	RECOMMENDED PROVIDER Charter Savings Bank	Easy Access Cash Isa	4.26%	82%	£1	Internet	Monthly, anniversary
One-year fixed rate	OakNorth Bank	Fixed Term Savings Account	5.12%	n/a	£1	Internet, mobile app	Monthly, on maturity
One-year fixed rate cash Isa	UBL UK	1 Year Fixed Rate Cash Isa	4.98%	n/a	£2,000	Branch, internet, mobile app, postal	On maturity
Two-year fixed rate	OakNorth Bank	Fixed Term Savings Account	5.21%	n/a	£1	Internet, mobile app	On maturity (compounded annually)
Two-year fixed rate cash Isa	UBL UK	2 Year Fixed Rate Cash Isa	5.1%	n/a	£2,000	Branch, internet, mobile app, postal	Monthly, anniversary, on maturity
Three-year fixed rate	Chetwood Bank	3 Year Fixed Rate Savings Account	5.23%	n/a	£1,000	Internet	Yearly
Three-year fixed rate cash Isa	UBL UK	3 Year Fixed Rate Cash Isa	5.15%	n/a	£2,000	Branch, internet, mobile app, postal	Monthly, quarterly, anniversary, on maturity
Four-year fixed rate	RECOMMENDED PROVIDER Aldermore	4 Year Fixed Rate Account	5.17%	74%	£1,000	Internet	Monthly, yearly
Four-year fixed rate cash Isa	RECOMMENDED PROVIDER Zopa	Smart ISA - 4 Year Fixed Term Isa pot	4.7%	74%	£1	Mobile app	Monthly
Five-year fixed rate	GB Bank	5 Year Fixed Rate Bond	5.37%	n/a	£1,000	Internet	Monthly, yearly
Five-year fixed rate cash Isa	Leek Building Society	5 Year Fixed Rate Cash Isa	5.3%	n/a	£1,000	Branch, internet, postal	Anniversary

Table notes: rates sourced from Moneyfacts on 21 October 2026 and based on a balance of £5,000. Provider customer score is based on savers' overall satisfaction with the brand and how likely they are to recommend it to others. n/a means sample size was too small for us to generate a provider score. (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:

In September, the average rates for one-year and longer-term fixed bonds stood at 4.41% and 4.49% AER, respectively. Last month's average instant-access rate was 2.53%.

Find out more: best savings accounts 2026.

What's happening to savings rates?

Savings rates fell after the Bank of England began cutting the base rate in August 2024. It's fallen six times since then but has been held at its current rate of 3.75% since December 2025.

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 dropping for months, they're now climbing again.

That may be partly because providers are second-guessing the impact the Middle East war will have on the UK economy.

The Bank of England's Monetary Policy Committee will next meet to decide interest rates on 5 November, with some economists predicting a rise in the base rate.

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 was 2.53% on 1 October 2026 – the same as last month.

A couple of instant-access deals offer rates as high as 5% AER. However, the top deals have significant strings attached, such as balance limits, restrictions on who can open them, temporary introductory rates or withdrawal limits.

The top deal for an instant-access account without restrictions or a bonus rate is Cahoot's Simple Saver, paying 4.52% 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 increased between September and October 2026. The average one-year rate rose from 4.28% AER to 4.41%. Rates for an account lasting more than 12 months also rose from 4.31% to 4.49%.

Long-term bonds currently have the edge over short-term accounts. For example, GB Bank's five-year deal pays more than OakNorth Bank's one-year account – 5.37% compared with 5.12%.

Cash Isas

Cash Isas allow you to save up to £20,000 tax-free annually. Rates across all types of cash Isa increased in October.

The average rate for instant-access cash Isas rose from 2.71% to 2.75%, while the average one-year fixed Isa climbed from 4.26% to 4.39%. Rates for Isas lasting more than 12 months rose from 4.3% to 4.44%.