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

“Savers looking to grab a top rate will need to act quickly as some of the best returns on short-term fixed rate bonds have fallen in recent weeks. Table-topping brands have cut the rates on offer to adjust their market positions, leading to further cuts from other brands. Unlike the period of vigorous rate rises just a couple of months ago, providers have slowed this pace with some withdrawing deals in the space of a few days.

“Inflation continues to take its toll on savers’ cash, as not one standard savings account can beat it. However, savers should not be discouraged to compare and should switch deals if they can, as they could miss out on a better return if they become apathetic. Easy access accounts remain a firm favourite among savers, but it’s disappointing to see many of the biggest high street banks are paying very little to their loyal customers. However, challenger banks and building societies are offering some of the best rates out there, so it is always worth considering the more unfamiliar brands.

“We may well see further interest rate rises and this should encourage savers to compare and switch. One area of the savings market to see an increase to rates and competition is for notice accounts, which could be a great choice for savers who do not want to tie their cash up in a fixed rate bond or ISA. Those savers who may not be using their ISA allowance must keep in mind both their Personal Savings Allowance and its thresholds if they have a large pot. As we come towards the end of another year it may be an ideal time to take stock of any older accounts and look to move them to take advantage of the latest deals.”

*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.