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Inflation-busting savings accounts: where can you earn up to 5%?
The majority of savings deals can now beat inflation after November's CPI rate fell to 3.2%
The share of savings deals beating inflation has climbed to 74% after November's Consumer Price Index (CPI) dropped to 3.2%, its lowest level in eight months.
That's a significant improvement over last month, when Which? analysis found that 61% of savings accounts offered interest higher than inflation. However, it's still a far cry from the beginning of the 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 1,702 savings accounts (74% of all products) offering rates higher than November's 3.2% inflation rate. This includes variable-rate deals, fixed-rate bonds and cash Isas. That's up from last month's inflation announcement, when 61% of accounts beat the CPI figure.
Variable-rate products – such as instant-access accounts – have the worst rates overall. Just 51% of deals beating inflation.
The lion's share of inflation-busting deals are fixed-rate bonds, with 96% offering returns higher than the current CPI figure. For cash Isas, it's 75%.
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 | 4.28% | n/a | £1 | Mobile app | Monthly |
| One-year fixed rate | Kent Reliance | 4.51% | 74% | £1,000 | Internet | Monthly, yearly |
| One-year fixed rate cash Isa | Investec Save | 4.3% | n/a | £1,000 | Internet | On maturity |
| Two-year fixed rate | Kent Reliance | 4.42% | 74% | £1,000 | Internet | Monthly, yearly |
| Two-year fixed rate cash Isa | Charter Savings Bank | 4.2% | 74% | £5,000 | Internet | Monthly, anniversary |
| Three-year fixed rate | Kent Reliance | 4.26% | 74% | £1,000 | Internet | Monthly, yearly |
| Three-year fixed rate | Castle Trust Bank | 4.16% | n/a | £1,000 | Internet, mobile app | On maturity |
| Four-year fixed rate | UBL UK (Raisin exclusive*) | 4.26% | n/a | £2,000 | Internet, mobile app | On maturity |
| Four-year fixed rate | UBL UK | 4% | n/a | £2,000 | Branch, internet, mobile app, postal | Monthly, quarterly, anniversary, on maturity |
| Five-year fixed rate | Hampshire Trust Bank | 4.31% | n/a | £1 | Internet | Yearly |
| Five-year fixed rate cash Isa | Hampshire Trust Bank | 4.14% | n/a | £1 | Internet | Anniversary |
Table notes: rates sourced from Moneyfacts on 17 December 2025. 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.
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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 November stood at 3.95% AER and 3.88%, respectively. Last month's average instant-access rate was 2.51%.
- Find out more: best savings accounts 2025
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 four times since then, reducing it to 4% on 7 August. The base rate has been held at that level since then, but experts are predicting it will fall when the BoE makes its next decision on Thursday (18 December).
Instant access
Moneyfacts data shows a slight uptick in interest offered by instant-access accounts, which pay variable rates and can be changed at short notice. That bucks the trend seen elsewhere in the savings market where rates are continuing to fall. The average instant-access rate inched up from 2.51% AER to 2.52% in the 12 months to 1 December 2025.
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 interest is given only on deposits up to £3,000, after which you earn no interest.
Savers with larger nest eggs will have to settle for the next best rate of 4.5% AER. However, the product from Chase 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 4.4% 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 saw a slight uptick between September and October 2025, but have since slipped. The average one-year rate fell from 3.95% AER to 3.92% and from 3.88% to 3.84% for an account lasting more than 12 months.
Shorter-term bonds currently offer the best rates. Kent Reliance has the best one-year deal, paying 4.51%, compared with 4.26% offered by UBL UK'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 the year, but got a small boost this month, rising from 2.69% to 2.71% on 1 December.
Average rates of fixed-rate cash Isas fell dramatically between April and June, when President Trump announced his tariffs. This caused the market to price in additional base rate cuts to counter the potential of falling economic growth.
Since then, fixed rates have remained stable but saw a sharp decline this month. The average one-year Isa rate dropped from 3.89% to 3.86%, while rates of Isas lasting more than 12 months fell from 3.82% to 3.79%.
- Find out more: best cash Isa rates 2025
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The story is regularly updated with the latest inflation figures.
