People with money stashed away in savings are being warned to act now or risk missing out on free cash.
This is because Brits who are lucky enough to have some savings will be able to pop them into a savings account with better-than-inflation interest rates for the first time since spring 2021.
The Consumer Price Index (CPI) dropped from 6.7 percent to 4.6 percent last month, which means that there’s now some standard bank accounts that are offering inflation beating rates.
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Moneyfactscompare.co.uk looked at hundreds of different savings accounts, ISAs and fixed-rate bonds to work out the best deal for someone with £10,000 in savings.
After crunching the numbers, the researchers found a 5.20 percent easy access saver from Ulster Bank; a 5.56 percent notice account with Shawbrook Bank and a one-year fixed-rate bond from Metro Bank at 5.91 percent. So it definitely pays to shop around and see which bank can offer you the best rate.
Rachel Springall, a finance expert at Moneyfactscompare.co.uk, said: "It has taken over two years, but finally inflation has fallen to a level where there are now some standard savings accounts that can outpace its eroding prowess. The savings market has felt a few rate cuts since last month's inflation announcement, with fixed-rate bonds under the spotlight.
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"Savers will no longer find a bond that pays more than 6%, but it is worth noting that challenger banks are still holding the top spots despite shuffling positions. These institutions can launch enticing offers to attract deposits for their future lending, but they also act quickly to pull offers when they become fully subscribed.
"Consumers will need to act quickly to grab the top deals on offer and consider the more unfamiliar brands when comparing deals."
She continued: "The incentive to switch remains for those savers with flexible pots, as many of the top rate deals that pay 5% or more for new customers do not come from the biggest high street bank brands.
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"It's simple and easy to switch, but savers must check the terms of any new account carefully, such as those with withdrawal restrictions or introductory bonus rates.
"To take full advantage of the best deals, it's worth spreading any investment across easy access accounts and fixed bonds, but there are also notice accounts to consider which currently pay competitive rates.
"As we edge closer to the end of the year, consumers may well be thinking about spending rather than saving, but it's still a good time to set up a nest egg to fall back on, just in case."
Claire Reid