Big Banks leave savers exposed to £373 inflation loss - Move Your Savings

17th June 2026

In times of uncertainty, savers may want to keep cash close, but with over 200 easy-access accounts beating inflation, leaving money in low-paying accounts is costly. Time to move your money out of low interest accounts.

Mortgages
Since the previous inflation announcement, the Moneyfacts Average Mortgage Rate has fallen from 5.64% to 5.54%.

Meanwhile, the average two-year fixed rate has fallen from 5.73% to 5.60%. The average five-year fixed rate has fallen from 5.66% to 5.57%.

Based on a typical £250,000 mortgage over 25 years, moving from the Moneyfacts Average Mortgage Rate of 5.54% to the average standard variable rate (SVR) of 7.13% would increase repayments by around £2,950 a year (£247 per month).

Caitlyn Eastell, Personal Finance Analyst at Moneyfactscompare.co.uk, said, “In recent weeks average mortgage rates have been dropping and may now be past their peak, offering a welcome opportunity for borrowers. For homeowners approaching the end of their deal, this could be an ideal time to review their options. Many lenders allow remortgage customers to secure a new rate up to six months before their current deal expires. This will give borrowers peace of mind, particularly while the interest rate path remains uncertain. Locking in a new deal early can also help borrowers avoid any unwelcome jumps in monthly repayments. Borrowers who allow their current deal to roll could see their costs rise sharply; someone on a typical £250,000 mortgage over 25 years could find themselves paying almost £3,000 more per year compared to average mortgage rates.

Savings
The Consumer Price Index (CPI) remained at 2.8% during May, from 2.8% in April.

The Moneyfacts Average Savings Rate currently sits at 3.57%, which is higher than inflation, meaning savers can get real returns on their cash but it’s still important to shop around for the best rates.
There are currently 1,825 savings accounts that beat inflation* (213 easy access, 179 notice accounts, 183 variable rate ISAs, 403 fixed rate ISAs and 847 fixed rate bonds).

In June 2025, there were 1,437 deals that could beat CPI which was then at 3.4% (May 2025 CPI) and in June 2024, there were 1,622 deals that could beat CPI which was at 2.0% (May 2024 CPI).

Caitlyn Eastell, Personal Finance Analyst at Moneyfactscompare.co.uk, said, “As prices rise and economic uncertainty persists, easy access accounts are playing a crucial role for households trying to keep emergency cash within reach. However, major high street banks are lagging, with their most flexible accounts offering just 1.16%^ collectively, leaving savers with little protection against rising prices. By contrast, some challenger banks are offering market-leading easy access rates of up 4.89%. Savers with £10,000 sitting in a big bank easy access account will earn just £116 a year, compared to the £489 they could earn just by switching to the best account. Once savers recognise this £373 yearly loyalty penalty the real-term benefit is difficult to ignore and they will be better off once they make the switch. It’s difficult to stay put when over 200 easy access accounts pay inflation-busting rates. Savers who move away from low-paying high street banks can grow the real value of their cash and stop emergency funds being eaten away by inflation.

“Savers may still be rewarded with even better deals, as savings rates may not have peaked yet. Markets are still pricing in a base rate hike, and a recent Bank of England survey found that 53% of people are expecting interest rates to rise this year. If proven right, banks and building societies are likely to pass this on as they’ll need to compete for deposits. As a result, headline rates may become more attractive, and the flexibility of an easy access account will allow savers to chase maximum returns. However, it’s a double-edged sword. Stubborn inflation means savers’ cash can still be losing power even when their balance ticks up on paper. This is why switching accounts regularly matters. Loyalty rarely pays and the best rates are typically reserved for new money, not existing customers.”