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Inflation-busting savings accounts: where can you earn up to 5%?
December's CPI rate rose to 3.4%. What savings deals can beat it?
The share of savings deals beating inflation has fallen to 67% after December’s Consumer Price Index (CPI) rose to 3.4%, marking its first increase in five months.
That's a sharp drop compared to last month, when Which? analysis found that 74% of savings accounts offered interest higher than inflation. However, it's still a far cry from this time last year, when 88% of products were inflation-busting.
Cash in an account paying less than the current rate of inflation is effectively losing value over time. Read on to find out which accounts offer the best interest.
Which savings accounts beat inflation?
Our analysis of Moneyfacts data shows that there are currently 1,584 savings accounts (67% of all products) offering rates higher than December's 3.4% inflation rate. This includes variable-rate deals, fixed-rate bonds and cash Isas. That's down from last month's inflation announcement, when 74% of accounts beat the CPI figure.
Variable-rate products – such as instant-access accounts – have the worst rates overall, with just 41.5% of deals beating inflation.
The lion's share of inflation-busting deals are fixed-rate bonds, with 91.5% offering returns higher than the current CPI figure. For cash Isas, it's 68%.
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) | 61% | £1 | Internet | Monthly, yearly |
| Instant access cash Isa | Plum | 4.32% | n/a | £1 | Mobile app | Monthly |
| One-year fixed rate | Al Rayan Bank (Raisin exclusive*) (s) | 4.32% (s) | n/a | £1,000 | Internet, mobile app | On maturity |
| One-year fixed rate cash Isa | Shawbrook Bank | 4.14% | n/a | £1,000 | Internet | Monthly, on maturity |
| Two-year fixed rate | Sensible Savings | 4.2% | n/a | £5,000 | Internet, postal | On maturity (compounded annually) |
| Two-year fixed rate cash Isa | Cynergy Bank | 4.1% | n/a | £500 | Internet | Anniversary |
| Three-year fixed rate | Sensible Savings | 4.2% | n/a | £5,000 | Internet, postal | On maturity (compounded annually) |
| Three-year fixed rate cash Isa | Cynergy Bank | 4.15% | n/a | £500 | Internet | Anniversary |
| Four-year fixed rate | Market Harborough Building Society | 4.07% | n/a | £5,000 | Branch, internet | Monthly, 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 | Hampshire Trust Bank | 4.27% | n/a | £1 | Internet | Yearly |
| Five-year fixed rate | Shawbrook Bank | 4.17% | n/a | £1,000 | Internet | Monthly, anniversary |
Table notes: rates sourced from Moneyfacts on 21 January 2026. 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) 5% AER on balances up to £3,000 for 12 months, after which funds transfer to a Cahoot Savings account at 1% (s) This is a Sharia-compliant product, and so offers an expected profit rate (EPR) as opposed to an annual equivalent rate (AER).
Compare savings accounts
Find the right savings account for you using the service provided by Experian Ltd
Compare and chooseHow savings rates track against inflation
It's important to pick a savings account with an interest rate above the current CPI figure. If your rate is lower than inflation, your savings will lose value in real terms.
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 December stood at 3.92% AER and 3.84%, respectively. Last month's average instant-access rate was 2.52%.
- Find out more: best savings accounts 2026
What's happening to savings rates?
Savings rates rocketed after the Bank of England (BoE) increased the base rate 14 times between December 2021 and August 2023. But when the base rate was reduced in the summer of 2024, average savings rates began to drop, too.
The BoE has cut the base rate six times since then, reducing it to 3.75% on 18 December 2025. Experts forecast it's unlikely to drop again when the next decision is made in February, but there is a possibility of another rate cut in March.
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 2.52% AER to 2.48% in the month to 1 January 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 only lasts for 12 months, after which your money will be placed in a savings account paying 1% AER. Interest is also only given on deposits up to £3,000.
Savers with larger nest eggs will have to settle for the next best rate of 4.5% AER. However, the product from Chase 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 is a lower 4.23% 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 December 2025 and January 2026. The average one-year rate fell from 3.92% AER to 3.85% and from 3.84% to 3.8% for an account lasting more than 12 months.
Shorter-term bonds currently offer the best rates. Marcus by Goldman Sachs has the best one-year deal, paying 4.55%, compared with 4.07% offered by Market Harborough Building Society's four-year account.
Cash Isas
Cash Isas currently allow you to save up to £20,000 tax-free annually.
The average rate of instant-access cash Isas has been steadily falling since the beginning of last year. In the month to 1 January 2026, it dropped from 3.4% to 3.34%.
Fixed rates also saw a decline. The average one-year Isa rate dropped from 3.85% to 3.79%, while rates of Isas lasting more than 12 months fell from 3.79% to 3.75%.
- Find out more: best cash Isa rates 2026
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The story is regularly updated with the latest inflation figures.
