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

“Savers may be pleased that cash savings rates continue to rise amid uncertainties surrounding the stock market. Cash savings accounts are a traditional haven for consumers, and fixed interest rate paying accounts provide a clear guaranteed return for investors during unprecedented times of uncertainty. However, inflation is still very much eroding the true spending power of savers’ cash, so it’s imperative savers do not become apathetic to switch at a time when competition in the top rate tables is rife. Top fixed bonds are reaching heights not seen for many years as challenger banks compete to entice savings deposits, but this has also seen deals change within a short time frame, so swift movement is wise to grab a top rate savings deal.

“Those savers who are about to see their one-year bond mature may wish to note the best deal today pays 4.75% (JN Bank), which is 3.24% more than last year’s top deal, of 1.51% (Gatehouse Bank) as an expected profit rate. One-year fixed ISAs are also on the up, but still pay less than fixed bonds, so as interest rates continue to rise, it’s imperative savers consider both their ISA allowance and their Personal Savings Allowance along with comparing interest rates. Amid the cost of living crisis, some savers may prefer to keep their cash close to hand, and thankfully, variable rates on both easy access accounts and ISAs have improved but savers will need to check the terms of each account to ensure it suits their needs.

“It is largely expected that the Bank of England will increase the base rate in the coming weeks, but savers would be wise to review their existing accounts now and switch to take advantage of the latest top rate deals. As we have seen time and time again, there is no guarantee that savers will see much benefit from a base rate rise, so it’s important they reconsider their loyalty if they are getting a raw deal.”

*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.