More than 1,800 savings accounts still beat inflation - check if you're getting best rate

More than 1,800 savings accounts still beat inflation - check if you're getting best rate We explain the different types of savings accounts and how to get the most interest for your money Savers are being urged to shop around as new analysis shows more than 1,800 accounts offer rates that beat inflation. It was confirmed today that inflation rose to 3.1% in August. Inflation is a measure of price rises over time and it eventually reduces the buying power of your money. This is because when prices rise, you can buy less things with your money than before. But the good news is, there are plenty of savings accounts that offer rates which are higher than inflation. This includes 193 easy access, 161 notice accounts, 159 variable rate ISAs, 417 fixed rate ISAs and 885 fixed rate bonds, according to new research from Moneyfacts. A top paying easy access account with a rate of 5% would give you interest of £500 if you saved £10,000 for one year - though this is a real-term gain of £190 after inflation is taken into account. The average savings rate is 3.68% AER. However, one in four savings accounts fall behind inflation predictions. Caitlyn Eastell, Personal Finance Analyst at Moneyfacts, said: “If inflation reaches 3.2%, as currently projected in Q4 of 2026, someone with £10,000 in cash would need to earn around £320 in interest over the year just to keep pace with rising prices.” She added: “Savers aren’t powerless against inflation, currently over 1,800 accounts can outpace it, with the best rates paying upwards of 5%. Even small differences in interest can become significant, particularly over several years. “Savers fixing £10,000 for five years at 2% could earn £1,040, compared to around £2,915 from the market-leading five-year bond at 5.25%. An almost £1,900 difference is a significant loss and is one that many savers may not be able to afford.” Types of savings accounts explained Easy-access accounts typically allow you to make withdrawals whenever you want. Some accounts may limit the number of withdrawals, so check the terms carefully. Regular saver accounts give you better rates, but you can normally only deposit a small amount each month. Some won't allow withdrawals, while others may limit how many withdrawals you can make. Notice accounts require you to give notice when you want to withdraw your money. Fixed rate accounts do not normally allow you to withdraw your money until the end of the term. ISA accounts let you deposit up to £20,000 a year and you do not pay tax on the interest. Outside of ISA accounts, if you are a basic rate taxpayer, you pay 20% tax when you earn more than £1,000 a year in interest. Higher rate taxpayers pay 40% tax when they earn more than £500 in interest a year, while additional rate taxpayers have no allowance and pay 45% tax on all savings interest.