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

“Savers will find providers have reviewed their table-topping cash interest rates in recent weeks, with notable attention made to fixed rate bonds and ISAs. Since the last inflation announcement, some of the top fixed rate bonds have seen reductions but further adjustments could be set to come. Savers may need to act with pace if they wish to take advantage of the current rates on offer. Inflation is still way above the Government’s target of 2% and it is eroding cash in real terms at its present level, but this should not discourage savers from comparing rates and switching to a better deal.

“Those savers who are prepared to lock their cash away for a year will find the top rate of 4.50% (Ikano Bank) is significantly higher than last year’s top deal, of 1.35% (Union Bank of India (UK) Ltd). Notable improvements have been made to longer-term fixed bonds since last year, but due to the volatility of interest rates over this period, savers who want a guaranteed return may well act on the side of caution and stick to shorter-term bonds. ISA rates are encouragingly on the rise, but there is still a rate gap between the top fixed ISAs and fixed bonds. It is essential savers consider both their ISA allowance and their Personal Savings Allowance before they commit but also be conscious of the rise in interest rates if they have a large pot.

“Flexibility with cash could be key for many savers amid a cost of living crisis, and thankfully, easy access and notice account rates are rising. However, despite consecutive base rate rises, some savers may find their loyalty has not been rewarded, so switching is key. Challenger banks and building societies are offering some of the best rates in this arena, so it’s wise to consider these brands over the more familiar household names. In addition, savers will need to also digest the terms any account may impose, such as withdrawal restrictions.”

*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.