NatWest Group PLC (LSE:NWG)-owned Ulster Bank's savings account was highlighted as one of the top earners for those looking for an inflation-beating return.
After consumer inflation notched 2.3% in April, the comparison site said 1,558 savings accounts had been left with inflation-beating rates.
“Individuals with funds to spare have enjoyed a savings sweet spot in recent weeks with easing inflation coinciding with a time when interest rates remained high,” Bestinvest analyst Alice Haine explained.
“But with a rate cut now imminent, lenders are likely to slash their best deals in the coming weeks and months.”
Moneyfacts noted Ulster Bank’s easy access saver, offering interest of 5.20%, was among the top deals, alongside DF Capital’s 5.35% notice account.
Money app Plum’s easy access individual savings account was highlighted for its 5.06% rate, while Virgin Money’s 5.05% fixed rate ISA was also picked out.
“In May 2023, there were no deals that could beat 8.7% (inflation),” Moneyfacts noted, “and in May 2022, there were no deals that could beat 9.0%”.
Fixed-rate bonds from Habib Bank Zurich offering 5.21% for one year and Shawrbook’s 4.57% five-year deal were also highlighted.
“There has been some volatility across the savings market in recent times, with a mix of rate rises and reductions across the piece,” Moneyfacts spokesperson James Hyde said.
“Changes substantially balancing one another out has led to average rates not changing a huge amount recently in the fixed rate arena.”