Where can I find the best savings rate?

You’ve worked hard to build up your savings, so you’ll want to know that they’re working hard for you, too.

Leaving your money languishing in a low-interest account could cost you hundreds, even thousands of pounds in interest over time. For example, someone putting £20,000 of savings into an easy access savings account paying 1.6% would receive a monthly return of £26.86, or £322 over the year. However, if they put their money in an easy-to-access savings account with a challenger bank that pays 4%, their monthly income would double to £67.90, or £815 over the year.

The lower your savings returns, the greater the risk that prices of goods will rise faster than the value of your savings, and your money will buy less than before. However, this doesn’t need to be the case, as there are now many accounts that offer competitive and inflation-beating returns – as long as you know where to look.

Kevin Mountford, co-founder of Raisin UK, said: “Every day there are still millions of people in low to no interest accounts, such as current accounts, where inflation reaches its peak and money loses its value.”