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Featured - Account Types
What type of savings account do you need?Find out about the different types of savings accounts available to suit a variety of needs.
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Specialist mortgages
Featured - Debt and your credit score
How debt impacts your credit scoreA healthy credit score has its benefits, so make sure you manage your debt correctly.
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Life InsuranceFor peace of mind that your loved ones will be supported financially after you die, consider taking our life insurance. Find out more and compare policies.
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In need of a cash boost?Providers often entice new customers with cash incentives for moving current accounts. Compare deals and find out how to make the switch:
Current accounts
Featured - Purchase Cards
Best purchase credit cardsExplore the best cards with a 0% introductory period.
Credit cards
Credit repair
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How much can I give as a cash gift?
How much can I give as a cash gift?Will your loved one's gift be tax affected?
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While fuel prices fall further, the cost of food remains stubbornly high.
UK inflation, which is used to measure how prices increase, rose at a rate of 10.1% in the year to January, according to the Office for National Statistics (ONS). In comparison, inflation rose by 10.5% in the 12 months leading to December.
Despite slowing for a third consecutive month, it remains at a near 40-year high.
“While any fall in inflation is welcome, the fight is far from over,” said Chancellor Jeremy Hunt.
“High inflation strangles growth and causes pain for families and businesses – that’s why we must stick to the plan halve inflation this year, reduce debt and grow the economy,” he said.
The ease in the rising cost of living largely came from another slowdown in fuel prices. In addition, the price of restaurants and hotels also made a downward contribution to the overall rate of inflation.
Meanwhile, the price of alcohol and tobacco prices increased and made an upwards contribution towards this figure. In the 12 months leading to January, the price for these particular goods rose by 5.1% compared to the 3.7% rise seen in the year leading to December.
While these were notable movements in prices this month, the rise in food prices remains stubbornly high at 16.7% in the 12 months leading to January. This was a slight drop from the 16.8% rise in the 12 months leading to December.
The general price of goods and services aren’t going down, this data suggests it is rather rising at a slower pace.
Savers will need to act quickly to take advantage of the latest deals as some of the top savings’ rates have tumbled over the past month.
The shorter-term fixed rate bond market has been impacted by various rate movements among challenger banks which sit highly within the top rate tables, showing yet another month in which these institutions are jostling for positions.
However, Cash ISAs have improved across a variety of sectors this month, with new market-leading rates to entice savers who have yet to use their ISA allowance.
Those savers who want to tie up their money in a fixed rate bond today for a year will be able to earn around 4% based on the top rate deals, which is around three times the return that they could have earned a year ago.
Fixed bonds continue to be offered by many challenger banks, as they tend to offer enticing rates to draw in balances to fund their future lending. As we reported a month ago, the top returns on many fixed rate bonds are coming down, but it’s still worthwhile for savers to compare deals now and secure a top rate to avoid disappointment.
Inflation is predicted to come down to around 3% in 2024, according to the Bank of England, and based on today’s top rates, savers would be able to make a return on their cash. However, as it stands there is not one single standard savings account that can outpace the current rate of the inflation.
It is expected that variable interest rates will continue to improve due to competition and the consecutive base rate rises fuelling the market. Savers who have not checked their existing rate would be wise to do, as not every provider has passed on each single base rate rise.
As the Bank of England base rate stands at 4% it is vital consumers take time to compare the latest deals on the market and sign up to rate alerts for any table-topping rates.
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Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfactscompare.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.
Many savers could earn more interest by overhauling their savings habits, by opening a regular savings account, for example.
Many savers could earn more interest by overhauling their savings habits, by opening a regular savings account, for example.
Each week the Moneyfactscompare.co.uk content team round up and discuss the very best ISA rates available in the UK. Compare and apply today.
With Income Tax bands set to remain frozen until 2028, more people may need to explore tax-free saving options.
Each week the Moneyfactscompare.co.uk content team round up and discuss the very best savings rates available in the UK. Compare and apply today.
Top one-year returns fall below 5.00% AER following Autumn Budget announcement.
Many savers could earn more interest by overhauling their savings habits, by opening a regular savings account, for example.
Many savers could earn more interest by overhauling their savings habits, by opening a regular savings account, for example.
Each week the Moneyfactscompare.co.uk content team round up and discuss the very best ISA rates available in the UK. Compare and apply today.
With Income Tax bands set to remain frozen until 2028, more people may need to explore tax-free saving options.
Each week the Moneyfactscompare.co.uk content team round up and discuss the very best savings rates available in the UK. Compare and apply today.
Top one-year returns fall below 5.00% AER following Autumn Budget announcement.
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Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.