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.
Savings
ISAs
Residential
Buy to let
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.
Loans
Featured - Life Insurance
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.
Home & vehicle
Health & travel
Featured - Switching deals
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
Calculators & guides
Business savings
Business products
Business insurance
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?
Categories
Featured guides
Popular news
Latest news - by category
Other money & finance news
Featured Star Ratings categories
Other Star Ratings categories
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.
Savings
ISAs
Residential
Buy to let
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.
Loans
Featured - Life Insurance
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.
Home & vehicle
Health & travel
Featured - Switching deals
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
Calculators & guides
Business savings
Business products
Business insurance
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?
Categories
Featured guides
Popular news
Latest news - by category
Other money & finance news
Featured Star Ratings categories
Other Star Ratings categories
After months of falling inflation, December’s figure unexpectedly rose to 4%.
UK inflation hit 4% in December, according to the latest figures from the Office for National Statistics (ONS).
This is a slight increase compared to November’s inflation figure of 3.9%.
The Consumer Prices Index (CPI), which is the main indicator of inflation, tells us how quickly the prices of everyday goods and services have risen over the course of a year. This latest increase means that, overall, these prices are more expensive than one year ago.
Alcohol and tobacco were two of the main drivers of the increase in inflation, followed by transport and recreation and culture. This comes after the Chancellor of the Exchequer, Jeremy Hunt, announced an increase to tobacco duty as part of his Autumn Statement back in November.
Caption: UK inflation rose to 4% in the year to December
UK inflation has been falling over the course of 2023, after reaching a high of 11.1% in October 2022, and many experts had expected this trend to continue. However, several other countries also saw a small uptick in inflation in December, including France and the United States, so it’s perhaps not surprising that the UK has seen a similar change.
The Bank of England will be paying close attention to news of this latest increase as inflation is one of the key factors that determines the base rate. The increases to the base rate during the past couple of years were an attempt by the Bank of England to get inflation under control and closer to its target of 2%.
Attention will now turn to 1 February, when the Bank of England’s Monetary Policy Committee (MPC) will vote on the base rate for the first time in 2024.
Following significant falls in inflation in October and November, this time last month there were over 1,100 inflation-beating savings deals available. Despite today’s slight CPI rise and recent rate reductions, there remain just under 1,000 available that can trump inflation.
“We recently saw the highest month-on-month drop to fixed savings rates in 15 years, but variable rates have remained fairly steady despite the fluctuation of other factors,” said James Hyde, Spokesperson for Moneyfactscompare.co.uk.
“With some no notice accounts still paying over 5% interest, their instant accessibility may be a tempting factor for those not wishing to lock money away for a defined period,” Hyde added.
Despite many providers across the sector significantly cutting rates in recent weeks, challenger banks continue to occupy the top positions in our charts. These providers are often able to offer competitive deals, however, their readiness to pull top rates once targets have been hit means it’s imperative to strike while the iron is hot to secure the best deal.
Our savings charts are regularly updated throughout the day to show you the best rates currently available. Alternatively, you can read our weekly savings and ISA roundups for further details on accounts offering some of the top rates.
All of our newsletters are available free by email to all Moneyfactscompare.co.uk users.
Send me Weekend Moneyfactscompare, Savers Friend, Companies Friend and selected third-party offers.
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.
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.
Longer-term fixed bond returns rise as inflation hits six-month high.
The Moneyfacts Pick of the Week showcases the best of the latest products or rate changes to hit the consumer finance market.
This week's selection includes a top-performing one-year bond from Al Rayan Bank, and a highly competitive one-year ISA from Castle Trust Bank.
As almost all average savings rates decline, consumers may need to take action to see their money grow in real terms.
As almost all average savings rates decline, consumers may need to take action to see their money grow in real terms.
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.
Longer-term fixed bond returns rise as inflation hits six-month high.
The Moneyfacts Pick of the Week showcases the best of the latest products or rate changes to hit the consumer finance market.
This week's selection includes a top-performing one-year bond from Al Rayan Bank, and a highly competitive one-year ISA from Castle Trust Bank.
As almost all average savings rates decline, consumers may need to take action to see their money grow in real terms.
As almost all average savings rates decline, consumers may need to take action to see their money grow in real terms.
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.
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.