Published On: Fri, Jun 19th, 2020

Savings accounts: Best savings accounts for your money as rates drop | Personal Finance | Finance

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Savers are braced for misery after inflation dropped to 0.5 percent in May. This is the lowest rate of inflation seen in four years. The rate dropped to 0.8 percent in April, falling a further 0.3 percentage points to 0.5 percent in May. has compiled a list of the best savings accounts for your money as interest rates have dropped.

The Bank of England reduced the base rate to just 0.1 percent in March to help ease the economic impact of coronavirus.

The consumer prices index measure of inflation stood at 0.5 percent in May, a four-year low and the fourth successive month in which inflation has fallen, according to the Office for National Statistics (ONS).

The fall was driven by lower pump prices and cheaper games and toys.

The decrease means 645 savings accounts and tax-free ISAs now pay 0.5 percent or more according to analysts Savings Champion.

READ MORE: Money saving tips: How to save money amid lockdown

The best three-year fixed savings account

Three year fixed rate savings accounts can be beneficial for those who will not need their funds for three years.

The best three-year fixed rate savings account is with AI Rayan Bank.

The EPR rate is at 1.51 percent with a minimum deposit of £1,000.

The best five-year fixed savings account

You can often get a better rate if you lock your cash in for five years, but you need to weigh up whether it is worth it.

Currently, the best five year fixed rate account is with RCI Bank offering a rate of 1.4 percent.

There is a minimum deposit of £1,000 up to a maximum deposit of £1m.

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