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18 Feb 2026

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

January's CPI rate fell to 3%. What savings deals can beat it?

Matthew JenkinSenior writer

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

The share of savings deals beating inflation climbed to 75% after January’s Consumer Price Index (CPI) fell to 3%.

That's more than last month, when our analysis found that 67% 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 1,793 savings accounts (75% of all products) offering rates higher than January'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 67% of accounts beat the CPI figure.

Variable-rate products – such as instant-access accounts – have the worst rates overall, with just 50% 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 76%.

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	4.3%	73%	£1	Mobile app	Monthly
One-year fixed rate	Rova	4.25%	n/a	£500	Mobile app	On maturity
One-year fixed rate cash Isa	Castle Trust Bank	4.15%	n/a	£1,000	Internet, mobile app	On maturity
Two-year fixed rate	OakNorth Bank	4.18%	n/a	£1	Internet, mobile app	On maturity (compounded annually)
Two-year fixed rate cash Isa	Tandem Bank	4.06%	n/a	£0	Mobile app	Monthly
Three-year fixed rate	OakNorth Bank	4.18%	n/a	£1	Internet, mobile app	On maturity (compounded annually)
Three-year fixed rate cash Isa	Aldermore	4.15%	74%	£1,000	Internet	Monthly, anniversary
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	Hampshire Trust Bank	4.34%	n/a	£1	Internet	Yearly
Five-year fixed rate cash Isa	Castle Trust Bank	4.25%	n/a	£1,000	Internet, mobile app	On maturity

Table notes: rates sourced from Moneyfacts on 18 February 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 January stood at 3.85% AER and 3.8%, respectively. Last month's average instant-access rate was 2.48%.

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. Although it's currently held at that level, experts predict that it will be cut again next month.

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 2.48% AER to 2.41% in the month to 1 February 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 4.23% 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 January and February 2026. The average one-year rate fell from 3.85% AER to 3.81% and from 3.8% to 3.79% for an account lasting more than 12 months.

Longer-term bonds currently offer the best rates. Hampshire Trust Bank and Castle Trust Bank share the top spot for the best five-year deal, paying 4.34%, compared with Rova's one-year bond, which pays 4.25%.

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 February 2026, it dropped from 2.69% to 2.58%.

Fixed rates also saw a decline. The average one-year Isa rate dropped from 3.79% to 3.76%, while rates for Isas lasting more than 12 months stayed steady at 3.75%.