Rachel Springall, Finance Expert at Moneyfacts.co.uk, said:

“Savers will need to act quickly to take advantage of the latest deals as some of the top savings’ rates have tumbled over the past month. The shorter-term fixed rate bond market has been impacted by various rate movements among challenger banks which sit highly within the top rate tables, showing yet another month in which these institutions are jostling for positions. However, Cash ISAs have improved across a variety of sectors this month, with new market-leading rates to entice savers who have yet to use their ISA allowance.

“Those savers who want to tie up their money in a fixed rate bond today for a year will be able to earn around 4% based on the top rate deals, which is around three times the return that they could have earned a year ago. Fixed bonds continue to be offered by many challenger banks, as they tend to offer enticing rates to draw in balances to fund their future lending. As we reported a month ago, the top returns on many fixed rate bonds are coming down, but it’s still worthwhile for savers to compare deals now and secure a top rate to avoid disappointment.

“Inflation is predicted to come down to around 3% in 2024, and based on today’s top rates, savers would be able to make a return on their cash. However, as it stands there is not one single standard savings account that can outpace the current rate of the Consumer Price Index (CPI). It is expected that variable interest rates will continue to improve due to competition and the consecutive base rate rises fuelling the market. Savers who have not checked their existing rate would be wise to do, as not every provider has passed on each single base rate rise. As the Bank of England base rate stands at 4% it is vital consumers take time to compare the latest deals on the market and sign up to rate alerts for any table-topping rates.”

*Data note: Please note that these savings product numbers only include deals that are available to UK residents (easy access, notice, fixed rate bonds, variable or fixed ISAs) and exclude regular savers and children’s savers (this figure does not count each interest payment option for each account), based on a £10,000 deposit. Higher rates may be available for other levels of deposit.