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UK Savers Urged to Seize High-Interest Accounts Now

1/24/2026

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Savers Seek Returns

More than 1,400 savings accounts offer returns above inflation, prompting UK savers to act.
Caitlyn Eastell from Moneyfacts identifies January as a key time for reassessing savings strategies.
Alice Haine advises savers to seek competitive deals promptly to maximise returns.
Currently, 67% of savings accounts exceed December's inflation rate of 3.4%, and 91.5% of fixed-rate bonds beat inflation, with the top one-year fixed-rate at 4.35% from Meteor and OakNorth Bank.

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Bank's Rate Dilemma

The Bank of England may struggle to cut rates this year as wage growth sustains inflation, because a survey links higher costs to hospitality job losses.
Megan Greene, a Bank of England Monetary Policy Committee member, said employers plan pay increases that could push inflation higher.
Inflation is 3.4%, above the 2% target.
Savers should act quickly, as one-year fixed-rate bonds go up to 4.35%.

History

Historical Context

In October 1992, the UK adopted an inflation target of 2.5% after exiting the European Exchange Rate Mechanism, aiming to stabilize the economy following a recession and inflation peak of 10.9% in 1990. The Bank of England was tasked with managing this target, which was later adjusted to 2% in December 2003, reflecting ongoing challenges in balancing economic growth and inflation control.

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Savers Seek Returns

More than 1,400 savings accounts offer returns above inflation, prompting UK savers to act.
Caitlyn Eastell from Moneyfacts identifies January as a key time for reassessing savings strategies.
Alice Haine advises savers to seek competitive deals promptly to maximise returns.
Currently, 67% of savings accounts exceed December's inflation rate of 3.4%, and 91.5% of fixed-rate bonds beat inflation, with the top one-year fixed-rate at 4.35% from Meteor and OakNorth Bank.

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