Recently released figures have revealed that despite industry improvements there are still no savings accounts that are able to protect hard-earned cash from the impact of inflation.
With Consumer Prices Index (CPI) inflation accelerating to 2.5% in June, from 2.1% the previous month, there is not one standard cash savings account that can beat it, according to Moneyfacts.co.uk.
This means that the value of many savers' pots is shrinking in real terms.
For anyone with savings and especially those who have managed to save money due to the reduced spending in lockdown, it's a blow and experts have recommended looking for an account with upped interest rates.
Sarah Coles, the personal finance analyst at Hargreaves Lansdown, spoke to yourmoney.com and said: “Most people think it’s not worth bothering to switch because rates are so low right now.
"However, you can make 50 times the interest in the most competitive easy access accounts and you have to ask yourself what the alternative is.
"If you’re going to sit tight and wait for your bank to offer you more, you could be in for a hell of a wait, because the market expects the Bank of England to keep rates at 0.10 per cent until 2023.”
A year ago, when inflation was lower, more than 300 deals, including easy access accounts, notice accounts, Isas and bonds, could beat inflation, Moneyfacts said.
Rachel Springall, a finance expert at Moneyfacts.co.uk, said: "Despite improvements to the top savings rate deals in recent weeks, inflation is raining havoc on savers' cash.
"There is currently not one standard savings account that can outpace its eroding power."
She added: "Consumers with a fixed bond or Isa that is about to mature may wish to compare deals now, particularly on one-year fixed bonds.
"Savers who prefer to lock away their cash for a higher return may want to think carefully about how long they are comfortable to commit, as we could see further improvements to rates in the weeks to come."
Ms Springall added: "Those savers who traditionally lock cash away for one year and grabbed the top rate a year ago will find they can lock into a higher rate today.
"The sad truth despite such positive rate changes is that there are no standard savings accounts that can beat the current level of inflation."
Moneyfacts' definition of standard savings accounts excludes certain accounts, such as regular savers, children's accounts and current accounts.
Get the latest money-saving and benefits news sent straight to your inbox. Sign up to our weekly Money newsletter here.
