Best Cash-Saving Deals to Beat Inflation in 2025

As inflation continues to impact household budgets, finding the best savings accounts with above-inflation interest rates has become crucial for UK savers. With the Bank of England (BoE) base rate at 4.25%, many financial institutions still offer competitive deals that help protect your money from losing value.

This guide explores the top cash-saving deals available in May 2025, including fixed-rate, easy-access, notice, and regular savings accounts, ensuring you can make an informed decision to maximize your returns.

Why Savers Must Act Now

Inflation rose to 3.5% in April 2025, up from 2.6% in March, according to the Office for National Statistics (ONS). This means savings accounts must offer at least 3.5% to prevent your money from losing value in real terms.

Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, warns:
"Savings rates are now firmly in retreat mode, and with more bank rate reductions expected, those who want to preserve their return must act fast by securing the best deal possible while interest rates remain on the higher side."

Victor Trokoudes, CEO of Plum, adds:
"Don’t assume your high street bank will give you a good deal—you have to do your research to find the highest interest rates."

Best Fixed-Rate Savings Accounts

Fixed-rate savings accounts lock in your money for a set term (typically 1-5 years) in exchange for higher interest rates. These are ideal for those who don’t need immediate access to their funds.

Top Fixed-Rate Deals:

1. Investec via Prosper – 4.52% AER (1-year term)

   • Minimum deposit: £20,000

   • Maximum deposit: £5 million

   • Includes a 0.19% "Prosper Boost" paid in cash at maturity

2. GB Bank via Prosper – 4.5% AER (1-year term)

   • Minimum deposit: £1

   • Maximum deposit: £2.5 million

3. Tandem Bank – 4.44% AER (1-year term)

   • Minimum deposit: £1

   • Maximum deposit: £2.5 million

High-Street Bank Options:

• Tesco Bank – 4.05% AER (1-year term, £2,000 minimum)
• Nationwide – 4% AER (1-year term, £1 minimum)

Note: Withdrawing early from a fixed-term account usually means losing accrued interest.

Best Easy-Access Savings Accounts

Easy-access accounts offer flexibility, allowing withdrawals at any time, but typically at lower interest rates. These are best for emergency funds or short-term savings goals.

Top Easy-Access Deals:

1. Atom Bank – 4.75% AER

   • No minimum deposit

   • Rate drops to 2.5% in months with withdrawals

2. West Brom Building Society – 4.65% AER

   • £1 minimum deposit

3. Vida Savings – 4.63% AER

   • £1,000 minimum deposit

Santander Edge Saver offers 6% AER, but only for existing current account holders.

Best Notice Savings Accounts

Notice accounts strike a balance between accessibility and higher interest rates by requiring advance notice (usually 30-120 days) before withdrawals.

Top Notice Account Deals:

1. OakNorth Bank via Prosper – 4.74% AER (95-day notice)

   • £20,000 minimum deposit

2. GB Bank – 4.65% AER (120-day notice)

   • £1,000 minimum deposit

3. Vida Savings Bank – 4.65% AER (95-day notice)

   • £50 minimum deposit

Rates on notice accounts are variable and can change over time.

Best Regular Savings Accounts

Regular savings accounts reward consistent monthly deposits with high interest rates, often up to 8%. These are ideal for disciplined savers.

Top Regular Saver Deals:

1. Principality – 7.5% AER (6-month term)

   • Save up to £200 per month

2. The Co-operative Bank – 7% AER (1-year term, existing customers only)

   • Save up to £250 per month

3. First Direct – 7% AER

   • £25 minimum monthly deposit

Key Considerations When Choosing a Savings Account

• Inflation Protection – Ensure the rate beats inflation (currently 3.5%).
• Access Needs – Fixed-term accounts offer higher rates but restrict withdrawals.
• Deposit Limits – Some accounts require large minimum deposits.
• FSCS Protection – All listed accounts are covered up to £85,000 per person (£170,000 for joint accounts).

Final Thoughts

With savings rates declining, securing a high-interest account now is essential to protect your money from inflation. Whether you prefer fixed-term, easy-access, notice, or regular savings accounts, multiple options offer returns above 4%.

"Savers must act quickly to lock in the best rates before further cuts," advises Alice Haine. By comparing deals and understanding your financial needs, you can ensure your savings continue to grow in real terms.