Saving money is getting harder these days. Prices keep rising (inflation was 4.6% in late 2023), but most savings accounts pay less than this. This means your money is actually losing value in ordinary accounts. But don't worry I've researched the best savings options that actually beat inflation right now.
1. Easy Access Savings Accounts (Best for Flexibility)
These let you withdraw money anytime. The top ones in 2025:
Chip Instant Access Account: 4.84% interest (minimum £1)
Monzo Easy Access: 4.60% (no minimum deposit)
Santander Easy Access Saver: 4.20% (must have current account)
Why good? Your money grows but stays available for emergencies.
2. Fixed Rate Bonds (Higher Interest If You Can Wait)
Lock your money away for 1-5 years for better rates:
1 Year Bond: Metro Bank 5.66% (£500 minimum)
2 Year Bond: Close Brothers 5.40% (£10,000 minimum)
5 Year Bond: UBL UK 4.91% (£2,000 minimum)
Best for: Money you won't need soon rates beat inflation comfortably.
3. Regular Savings Accounts (For Monthly Savers)
If you can save monthly, these offer great returns:
First Direct Regular Saver: 7.00% (save £25-£300/month)
Nationwide Flex Regular Saver: 6.50% (must have current account)
Lloyds Monthly Saver: 5.25% (max £400/month)
Perfect if you're building savings gradually.
4. Cash ISAs (Tax Free Savings)
You can save £20,000/year tax free:
Virgin Money Cash ISA: 5.25% easy access
Zopa Smart ISA: 5.08% (with bonus rate)
Barclays Rainy Day ISA: 4.75% (only on £1-£5,000)
Important: If you pay tax on savings interest, ISAs save you money.
5. Notice Accounts (Better Rates If You Plan Ahead)
Give 30-90 days notice to withdraw for higher interest:
Aldermore 90 Day Notice: 5.25% (£1,000 minimum)
Shawbrook 60 Day Notice: 5.10% (£1,000 minimum)
Good choice: When you know you'll need money in a few months.
6. Premium Bonds (No Interest But Prizes)
NS&I's unique savings option:
No interest, but tax-free prize draws every month
£1-£50,000 investment
Current prize rate: 4.65% equivalent
Fun fact: Someone wins £1 million every month!
7. Current Accounts With Good Interest
Some everyday accounts pay surprisingly well:
Club Lloyds: 4.25% on £5,000 (must pay in £1,500/month)
Kroo Current Account: 4.10% on all balances
Nationwide FlexDirect: 5.00% on £1,500 (first year only)
Smart move: Get interest on money you'd keep in your account anyway.
Quick Comparison Table
| Account Type | Best Rate | Minimum Deposit | Access Rules |
|---|---|---|---|
| Easy Access | 4.84% | £1 | Any time |
| 1 Year Fixed Bond | 5.66% | £500 | Locked for 1 year |
| Regular Saver | 7.00% | £25/month | Monthly deposits |
| Cash ISA | 5.25% | £1 | Tax-free |
| 90 Day Notice | 5.25% | £1,000 | 3 month wait |
| Premium Bonds | 4.65%* | £25 | Any time |
| High-Interest Current | 5.00% | £0 | With conditions |
*Premium Bonds prize rate equivalent
Final Tips for Beating Inflation
Mix accounts – Keep some money accessible, some growing faster
Check rates monthly – They change often
Use your ISA allowance – £20,000/year tax-free is valuable
Don't ignore small amounts – £50/month at 7% becomes £3,360 in 5 years
Remember, with inflation at 4-5%, any account paying less than this means your money is shrinking. The options above all beat inflation choose what fits your savings habits.
){kind=link}
0 Comments