Savers can earn real rates of interest on their money for the first time in more than two years after the fall in headline inflation to 4.6% today.
A range of savings accounts were today offering rates of above 5%, even for easy access accounts where Ulster Bank is the best available at 5.2%, according to financial data group Moneyfacts.
Fixed-rate accounts ranged from between 5.56% for a notice account at Shawbrook Bank, through to a one-year fixed-rate bond at Metro offering 5.91%.
On ISAs too, rates available are well above today’s consumer price inflation number, with a high street option, Virgin Money’s one-year fixed rate ISA, paying 5.85%.
Rachel Springall, from Moneyfacts, 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.
“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.
“Cash ISAs are still offering attractive rates, but there remains a rate gap between the top fixed rate bond and fixed rate ISAs."