‘A real return at last!’ This 5.91% savings account smashes inflation but there’s a catch | Personal Finance | Finance newsbhunt

Savers can get an inflation-beating return for the first time in years and savers should grab this opportunity to boost the spending power of their hard-earned deposits. It’s been a long wait.

Consumer price inflation stood at 6.7 percent as recently September, far above any best buy savings rate at the time. It then plunged to 4.6 percent in October which means that more than 200 savings accounts beat inflation today, said Anna Bowes, founder of rate-tracking service Savings Champion.

Inflation is still a huge threat to your wealth, though, she said. “Falling inflation doesn’t mean prices have fallen. They are merely rising at a slower rate and that makes it vital to put your savings to work by getting the best rate you can.”

We are almost certainly at the top of the current interest rate cycle with markets saying there is a 95 per cent that the next movement will be a cut. That sentiment is already reflected in the best buy tables, Bowes said. “A month ago it was still possible to find a fixed-rate bond paying six percent or more. That is no longer the case.”

To take advantage you will need to shop around, rather than just depending on your high street bank to give you an inflation-busting rate, she added. “The savings rate tables are still dominated by the smaller challenger banks and building societies, so check them out.”

According to Moneyfacts.co.uk, Metro Bank leads the charge paying a market-leading rate 5.91 percent fixed for one year on a minimum opening sum of £500.

The drawback is that this is a linked product, which means you need to open another Metro Bank required or Instant Access account, unless you already have one.

For those who don’t want to do that, SmartSave pays an attractive 5.76 percent but demands a minimum £10,000 deposit. Otherwise, Secure Trust Bank pays 5.66 percent on a minimum £1,000.