Best Cash-Saving Deals in 2024: Secure Above-Inflation Rates Amid Economic Shifts
As global trade tensions escalate under Trump’s tariff policies and the Bank of England holds interest rates steady, UK savers face a critical juncture. While inflation has dipped to 2.8%, securing savings accounts that outpace rising costs remains essential. This guide unpacks the best cash-saving deals available today, from fixed-rate bonds to flexible easy-access options, ensuring your money works harder in uncertain times.
How Trump’s Tariffs & Global Volatility Impact UK Savings Rates
The resurgence of Trump-era trade wars has injected fresh uncertainty into financial markets. Myron Jobson, Senior Personal Finance Analyst at Interactive Investor, warns:
“Policymakers may cut rates faster to shield the UK economy from a downturn worsened by tariffs. While this helps borrowers, savers risk losing hard-won gains after years of low returns.”
This economic ripple effect means savings rates could drop sooner than expected. For context, the BoE’s 4.5% base rate has already spurred lenders to trim fixed-term offers. Experts urge savers to act now to lock in high rates before further declines.
Best Fixed-Rate Savings Accounts (Beating Inflation)
Fixed-rate accounts offer stability, ideal for those comfortable locking away cash. Current top picks:
1. Cynergy Bank 1-Year Fixed Bond
- Rate: 4.65% AER
- Min Deposit: £1,000 | Max: £1 million
- Interest paid annually.
2. LHV UK 1-Year Fixed Saver
- Rate: 4.65% AER
- Min Deposit: £1,000
- CEO Erki Kilu emphasizes: “Our bond combats market volatility, offering control over your financial future.”
3. Oxbury 1-Year Fixed Account
- Rate: 4.63% AER
- Min Deposit: £1,000 | Max: £500,000
High-Street Alternative:
- Tesco Bank 1-Year Fixed Saver: 4.35% (Min £2,000).
Why Choose Fixed Rates?
- Predictable returns shielded from rate cuts.
- FSCS protection up to £85,000.
Top Easy-Access Savings Accounts for Flexibility
Need instant withdrawals? These accounts blend accessibility with competitive rates:
1. Sidekick Easy-Access Saver
- Rate: 4.84% (includes 0.8% bonus for 12 months)
- Min Deposit: £1 | Withdrawals: Unlimited.
2. Chip Instant Access Account
- Rate: 4.76% (drops to 3.5% after 3 months)
- Min Deposit: £1 | Max: £1 million.
3. Monument Easy-Access
- Rate: 4.75%
- Min Deposit: £25,000 | 3 withdrawals/year max.
Pro Tip: Santander’s Edge Saver offers 6% but is exclusive to current account holders.
Best Notice Savings Accounts: Balance Access & Returns
Notice accounts suit those planning future expenses (e.g., home deposits). Top deals:
1. OakNorth Bank 95-Day Notice Account
- Rate: 5% (4.61% daily + 0.39% annual bonus)
- Min Deposit: £20,000 | Term: 95 days.
2. Oxbury 120-Day Notice Saver
- Rate: 4.85%
- Min Deposit: £1,000.
3. Santander 185-Day Notice Account
- Rate: 4.83%
- Min Deposit: £20,000.
Note: Rates are variable; always confirm withdrawal rules.
High-Yield Regular Savings Accounts (Up to 7.5%)
For disciplined monthly savers, these accounts maximize returns:
1. Principality 6-Month Regular Saver
- Rate: 7.5%
- Monthly Limit: £200 | Interest paid at maturity.
2. Co-operative Bank Regular Saver
- Rate: 7% (Fixed for 1 year)
- Monthly Limit: £250 | Skips allowed.
3. First Direct Regular Saver
- Rate: 7%
- Min/Max Monthly: £25-£300.
Catch: Most require existing current accounts.
Expert Tips to Maximize Your Savings
- Lock In Rates Sooner: Fixed-term deals hedge against impending rate cuts.
- Diversify: Split savings between fixed and easy-access accounts.
- Review Regularly: Rates change frequently; don’t let your money stagnate.
- Use Tax-Free ISAs: Shield interest from taxes with Cash ISAs.
Ian Futcher, Financial Planner at Quilter, advises:
“Diversification is key—mix fixed-term deals with investments aligned to your risk tolerance.”
Final Call: Act Now Before Rates Drop
With Trump’s tariffs and BoE policies threatening further rate cuts, delaying could cost you. Whether you prioritize growth (fixed accounts) or flexibility (easy-access), today’s top deals still beat inflation. Compare options, leverage FSCS protection, and secure your financial resilience.