New survey data from LHV Bank reveals that 53% of UK savers are not confident they are receiving competitive returns on their savings. This comes despite 95% of savers actively checking their balances and 69% knowing where all their money is held.
Savings rates are currently the highest they have been since 2024. Analysis of Moneyfacts data from 19 August 2026 shows that 79% of savings deals can beat the Consumer Price Index figure, which was 2.9% in July 2026. However, variable-rate products lag, with only 59% beating inflation, compared to 99% of fixed-rate bonds and 80% of cash ISAs.
Some advertised interest rates include a 'bonus' rate that expires after a set period. For instance, Cahoot's Sunny Day Saver offers 5% AER, but this rate drops to 1% after 12 months. Sidekick’s top cash ISA includes a 1.38% bonus rate for the first six months, after which the rate changes.
Regular saver accounts, designed for monthly contributions, can offer high interest rates, such as Santander's 8% AER one-year account. However, the total interest earned can be less than expected because the balance builds gradually over the year.