Excellent savings rates are on offer currently, an expert said (Image: Getty)
Savers can take advantages of good offers from banks currently, according to one financial expert. The crisis in the Middle East leading to fuel prices soaring are likely to lead to interest rate rises to handle inflation, according to analysts.
Anna Bowes from The Private Office told Sky Money that people could beneffit from the change – with rates of up to 4.7% on offer. Fixed-rate bond top rates have climbed across the board, with some of the most competitive offers seen in over a year now available to savers.
Kent Reliance is also leading the two-year table with an identical rate. Just a week ago, only a single provider was offering 4.7%, yet that figure has now trebled, with Kent Reliance, GB Bank and RCI Bank all matching that rate.
“These top rates were all last seen in February 2025, when the base rate was still paying 4.5% – today, although there is a strong likelihood that the base rate will be raised in the near term, it is still sitting at 3.75%,” Bowes said.
For three-year and five-year bonds, the rates are “even more remarkable”, she added. While the future remains uncertain, locking away a portion of your savings currently appears worthwhile, with fixed-rate cash ISAs also recording similar gains.
In the one-year ISA table, UBL has reclaimed pole position, rising from 4.53% to 4.66%. RCI Bank leads the two-year ISA market with its 4.6% rate.
In the three-year ISA table, Nationwide has held onto its top spot at 4.6%, now joined by Aldermore. Competitive rates remain available for those preferring instant access, though improvements in this area have been more modest.
Charter Savings Bank has launched a new unlimited access account paying 4.26% on a minimum deposit of £1. Cynergy Bank’s Online E The Easy Access Account is currently offering a marginally higher rate of 4.27%, far superior to the older version which pays as little as 0.5%. “If you hold an older, poor-paying version of this account, it can be easy to open the new issue and switch your savings, so that you are making it work harder,” Bowes said.
Activity in the easy access cash ISA market has picked up somewhat over the past week, with a new elevated top rate emerging, though Plum continues to lead the way.
Top easy access accounts
Provider / Account name / Minimum / AER / Notes
- Chase / Chase saver with a boosted rate / £0 / 4.5% / Rate includes a fixed 12 month bonus of 2.25%. New Chase current account customers only.
- Hanley Economic Building Society / Dual Access Saver / £100 / 4.27% / You can withdraw twice without penalty per tax year. All other withdrawals are subject to 60 days loss of interest on the amount withdrawn.
- Charter Savings Bank / Easy Access Issue 75 /£1 / 4.26% / Unlimited Easy Access
- Principality Building Society / Online Bonus 5 Access / £1 / 4.25% / Rate includes a bonus of 1.95% for 12 months. Five withdrawals allowed per year, which includes closing the account.
- Mansfield Building Society / Triple Access Bonus Saver (1st issue) / £1 / 4.25% / Rate includes a variable bonus of 1% for 12 months. Three penalty free withdrawals allowed per year (including closure).
Top easy access cash ISA
Provider / Account name / Minimum / AER / Notes
- Plum / Plum Cash ISA / £100 / 4.32%/ The rate of includes a bonus of 1.78% if kept for 12 months. The Plum bonus will be added at the end of the first year. Transfers in are allowed, although the rate applied will be 4%, which includes a bonus of 1.46% for 12 months.
- Tembo / Tembo Cash ISA / £10 / 4.30% / The rate of includes a bonus of 1.5% for 12 months. Transfers in are not allowed.
- Moneybox / Cash ISA / £500 / 4.3% / The rate of includes a bonus of 0.85% for 12 months. Three penalty free withdrawals are allowed each year – any more and the rate will fall to 0.75% for the rest of the year. Transfers in are allowed.
- Kent Reliance / Easy Access Cash ISA Issue 73 / £1,000 / 4.27% Transfers in are not allowed.
- Charter Savings Bank / Easy Access Cash ISA Issue 76 / £1 / 4.26% Transfers in are allowed.
Some savers have potentially lost around 19p per £1 saved in real terms since 2020, due to the eroding impacts of inflation outpacing savings rates, according to analysis. Even those putting their money away into the most competitive cash savings deals may have seen the real value of their pots decrease, according to calculations made for the journal Interest from Moneyfacts.
It said that, based on average easy access deals, savers may have lost around 19p per £1 saved, while even based on the top-paying easy access accounts, savers may have lost around 5p per £1 saved. In some cases, savers may have beaten inflation. Money held in the top one-year fixed-rate accounts could have left savers around 1p per £1 saved better off, according to the calculations.
The conflict in the Middle East has prompted concerns about inflation risks and the impacts on household bills in the months ahead. This could make it even more important for savers to shop around for the best deal for their needs, to make sure their cash is working as hard as possible.
Adam French, head of consumer finance at Moneyfacts, said: “Many savers have already lost up to 19p per £1 saved in real terms since 2020 as rising costs have consistently run ahead of the rates paid on cash savings. And now another financial storm is coming with inflation forecast to spike again.”
He added: “Many savers either building their fundamental cash buffers or looking to put a lifetime of savings to use have found their progress undermined. Rates were too low for too long in the 2010s and then slow to catch up with the inflation shock of the 2020s. The result is that many cash savers were left materially worse off.”
Mr French continued: “If cash savings quietly lose value year after year, households are less likely to feel secure enough to spend or invest. While central banks are rightly focused on inflation, prolonged periods of negative real returns risk undermining financial confidence at a household level.
“Instead, savers are often left topping up what can feel like a leaking bucket. For savers, the interest rate is only half the story. If returns don’t at least keep pace with inflation, the real terms costs can slowly pile up and take years to undo.”