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Record Choice, Lower Returns: Only 26% of UK Savings Accounts Beat Base Rate

With inflation at 3.8%, analysts warn cash is losing spending power and advise considering fixed bonds or cash ISAs for guaranteed rates.

Overview

  • Moneyfacts reports a record 2,289 savings deals in September, including 662 cash ISAs and 155 providers, the highest since its records began in 2007.
  • The core average savings rate slipped to 3.46% in September from 3.50% in August, extending a multi‑month decline in typical returns.
  • Average easy‑access rates fell to 2.59%, their lowest since July 2023, while one‑year fixed bonds averaged 3.96% and one‑year fixed ISAs 3.91%.
  • Only about a quarter of accounts now pay more than the Bank of England’s 4% base rate following August’s cut, increasing the risk of real‑terms losses.
  • Some leading easy‑access offers are short‑lived or conditional, such as Chip’s 4.8% with a three‑month bonus or Shawbrook’s 4.26% requiring a £10,000 deposit.