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

“Inflation continues to take its toll on savers’ cash and may well do so for many months to come. Since the last inflation announcement, some of the top fixed rate bonds have improved, but elsewhere some fixed rate ISAs have worsened. These fluctuations reiterate the importance for savers to keep a close eye on the changing market and switch quickly to take advantage of a top rate. The murmurings of a base rate rise have quietened down since last month, but as inflation continues to rise, it’s only a matter of time before the Bank of England makes a move.

“Savers who prefer to keep their cash in a flexible account would have seen Aldermore paying a top rate of 0.75% on its Double Access Account withdrawn last week, which was the best top rate deal since the start of the year. Now the top rate is on the Online Flexi Saver from Investec Bank plc which pays 0.71% and unlike the Aldermore deal, this account does not restrict withdrawals.

“One area of the savings market to worsen since the last inflation announcement is the ISA arena, as the top rates across the one, two, three-and five-year categories are now paying less. There also remains a stark difference between the rates on deals outside and inside a tax-free wrapper. The top one-year bond now pays 1.41% as an expected profit rate from Gatehouse Bank, compared to 0.93% as interest for the ISA equivalent from Shawbrook Bank. Those looking at a five-year fixed deal can get 2.14% on a fixed bond from UBL UK, but only 1.75% as a top ISA rate from West Brom Building Society. If savers are comparing bonds and ISAs, then it’s vital they consider their Personal Savings Allowance foremost.

“Challenger banks and building societies continue to dominate the top rate tables and it is clear to see why savers need to act quickly to take advantage. Signing up to rate alerts and newsletters is wise as some deals don’t appear to have a lengthy shelf life.”

*Data note: Please note that these savings product numbers only include deals that are available to UK residents (no notice/easy access, notice, fixed rate bonds, variable or fixed ISAs) and excludes 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.