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Inflation-busting savings accounts: where can you earn up to 5%?
April's CPI rate fell to 2.8%. 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 79% after April’s Consumer Price Index (CPI) fell to 2.8%.
That's more than last month, when our analysis found that 70% 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 2,003 savings accounts (79% of all products) offering rates higher than April's 2.8% inflation rate. This includes variable-rate deals, fixed-rate bonds and cash Isas. That's up from last month's inflation announcement, when 70% of accounts beat the CPI figure.
Variable-rate products – such as instant-access accounts – have the worst rates overall: just 58% 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 81%.
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 | 4.5% | 73% | £1 | Mobile app | Monthly |
| One-year fixed rate | Melton Building Society | 4.8% | n/a | £5,000 | Branch, internet | Yearly |
| One-year fixed rate cash Isa | UBL UK | 4.66% | n/a | £2,000 | Branch, internet, mobile app, postal | On maturity |
| Two-year fixed rate | Hampshire Trust Bank | 4.76% | n/a | £1 | Internet | Yearly |
| Two-year fixed rate cash Isa | Tandem Bank | 4.71% | n/a | £0 | Mobile app | Monthly |
| Three-year fixed rate | Oxbury Bank | 4.76% | n/a | £1,000 | Internet | Yearly |
| Three-year fixed rate cash Isa | Castle Trust Bank | 4.62% | n/a | £1,000 | Internet, mobile app | On maturity |
| Four-year fixed rate | Oxbury Bank | 4.58% | n/a | £1,000 | Internet | Yearly |
| Four-year fixed rate cash Isa | United Trust Bank | 4% | n/a | £5,000 | Internet | Anniversary |
| Five-year fixed rate | Hampshire Trust Bank | 4.79% | n/a | £1 | Internet | Yearly |
| Five-year fixed rate cash Isa | Castle Trust Bank | 4.65% | n/a | £1,000 | Internet, mobile app | On maturity |
Table notes: rates sourced from Moneyfacts on 20 May 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%.
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
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 3.89% AER and 3.94%, respectively. Last month's average instant-access rate was 2.44%.
- 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 and is currently held at 3.75%. 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 have been steadily dropping for months now, they are starting to inch up 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 2.44% AER to 2.47% in the month to 1 May 2026.
There is now only one instant-access deal offering a rate as high as 5% AER: the Cahoot Sunny Day Saver. 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 deal for an instant-access account without restrictions or a bonus rate is Spring's Special Edition Easy Saver, paying 4.3% 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 April and May 2026. The average one-year rate rose from 3.89% AER to 4.09%. Rates for an account lasting more than 12 months also rose from 3.94% to 4.08%.
There is currently little difference between returns offered by short and long-term bonds. For example, Melton Building Society's one-year deal pays a fraction more than Hampshire Trust Bank's five-year account – 4.8% compared to 4.79%.
Cash Isas
Cash Isas currently allow you to save up to £20,000 tax-free annually. Rates have been heating up since February, as providers boosted deals in the run-up to the new financial year and the beginning of the next.
In the month to 1 May 2026, the average rate for instant-access cash Isas rose from 2.73% AER to 2.76%. Fixed deals have also improved since last month, with the average one-year Isa rising from 4.01% to 4.17%. Rates for Isas lasting more than 12 months increased from 3.98% to 4.14%.
- Find out more: best cash Isa rates 2026
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