Inflation in the UK is now at 3.3 per cent and predicted to rise significantly higher across the rest of 2026, sending up costs of food and fuel and eating away at our savings if they are earning less than that amount in interest.
The good news for savers though is that the top rates in savings accounts still outpace inflation. If the Bank of England does as it has hinted, and sends interest rates back up, banks could react to that with even better savings deals.
Adam French, head of consumer finance at Moneyfacts, said: “The war in Iran has completely upended interest rate expectations. Just months ago, savers were braced for a steady decline in returns as multiple base rate cuts were expected this year. Instead, inflation fears and rising energy prices have forced a sharp rethink.”
Several of the best rates are offering 4.3 per cent to 4.5 per cent or even higher, but there are also different account types to consider to best suit your needs, so ensure your money is working hard for you.
Here is our regular roundup of the best savings deals (rates are correct at the time of writing, but always ensure an account is right for your circumstances beyond the headline rate, including any bonus periods, withdrawal allowances and more. Rates are AER (annual equivalent rate) for easy comparison).
Best cash ISAs
ISAs are a type of account which means your savings are protected from tax. The allowance is £20,000 a year, at least for this year. New rules planned for April 2027 may limit cash ISA contributions to £12,000 for those under 65, so it makes sense to use as much of your allowance as you can.
Trading 212 is paying 4.51 per cent with a special code from The Independent and you can withdraw anytime without it hurting your rate. The bonus rate is only applicable for new contributions though, not transfers in or previous years’ savings.
Plum is paying 4.32 per cent, a rate which includes a 1.78 per cent bonus for the first year. After that it falls to 2.54 per cent. Plum holds your money with other banks – including Citibank, Lloyds and Qatar National – rather than being a bank themselves, but the money is still protected by the Financial Services Compensation Scheme (FSCS) up to £120,000.
Tembo offers a 4.3 per cent deal which is managed via an app that allows unlimited withdrawals. You also get access to fee-free mortgage advice if you want it.
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Best easy access savings accounts
One account offers 5 per cent on your money right now and that’s with Cahoot – but note, you only get that amount up to £3,000 and the account lasts for one year. No interest is paid on cash above the 3k limit. If you have an emergency pot which is just intended to sit unused but you can access it if you need to, this is a strong option to consider.
For higher amounts Tembo Money (Home Saver) seems to have the best overall rate currently available at 4.75 per cent. That includes a 1.75 per cent bonus for the first year. The minimum deposit is just £10, up to a maximum of £25,000. There is an additional 1 per cent bonus if you open a mortgage account with the bank, payable after a year, to give you 5.75 per cent overall. It’s only available if you use their mortgage services, though.
Chase, a well-known digital bank owned by US giant JPMorgan Chase, pays 4.5 per cent, which includes a “newbie” bonus for the first year.
Cynergy Bank has an easy online access account that pays 4.27 per cent. It is good for large balances up to £1m. That rate includes a 2 per cent bonus for the first 12 months.
Best fixed-term saver accounts
Fixed-term deals lock your money away in return for a set rate you know you’ll get, rather than the above easy access accounts, which can change up or down according to the Bank of England base rate and wider factors. You usually can’t get money out until the term finishes, or at least not without penalty. The accounts are also sometimes called fixed-term bonds, while some can be bought inside an ISA.
Al Rayan Bank is paying 4.7 per cent for one year. It requires a £1,000 minimum deposit. This is a Sharia-compliant account, available through the Meteor Asset Management platform.
For an 18-month lock up you can get 4.7 percent from Chetwood Bank, which again needs a £1,000 minimum starting amount.
And for two years, Kent Reliance offer 4.69 per cent, again with a minimum £1,000.
More deals are available for longer than this, although if you are considering locking your money up for such a long period you should consider whether investing some might be a better option instead.
