Cash ISA savers are being urged to make sure they move their savings to a better account which actually beats inflation.
Cash ISAs which don’t beat inflation are losing you money in real terms (Image: Getty)
Savers who have Cash ISAs are being urged to take action and move their money to a better paying account which actually beats inflation, after the latest figures were released this week.
On Wednesday, the Office for National Statistics announced the latest set of Consumer Price Index (CPI) inflation figures, pegging inflation at 3.8% for September.
It means, effectively, that the value of money has dropped by 3.8% on average thanks to rising prices.
Those with savings are impacted too, because unless your Cash ISA savings account is generating higher interest than inflation, you are losing money. For example, if inflation is 3.8% but you’re only getting 2.8% interest, you are losing 1% of your money’s spending power, as your interest isn’t keeping up with inflation.
And according to Finder, the average easy access variable Cash ISA account in the UK right now is giving savers a rate of just 1.99%, which is well below the inflation rate of 3.8%.
Finder says: “The UK’s average instant access savings rate was 2.26% as of September 2025. This is down from a 13-year high of 2.82% in January 2024. Meanwhile, the average variable cash ISA interest rate was 1.99% as of September 2025. This is down from a peak of 3.37% in October 2023 but up from 1.69% in June 2025.”
With easy access Cash ISAs offering a lower-than-inflation return right now, turning to fixes is the best way to keep ahead of inflation.
Finder adds: “Savers can generally find higher rates in fixed-rate ISAs, where you lock your money away for a set period. The average savings interest rate for a 1-year fixed rate ISA was 3.98% in September 2025, down from 5.48% in October 2023.”
But with a rate of 4% in a fix, you’d still be getting more money than inflation. And some Cash ISAs on the market right now will do even better than that.
Right now, Trading212 has an easy access Cash ISA which will give a boosted 3.85% variable – just above inflation – but with a 0.66% bonus for new customers taking it to 4.51%.
For fixed term, Vida Savings will currently give 4.28% fixed for 12 months, while Investec gives 4.27%. UBL UK gives 4.23% while Natwest offers 4.2%.
All of these are higher than the current 3.8% inflation rate, meaning you’re growing your money rather than losing it.
