Savers can earn over 3 per cent with short-term fixed deals for the first time in nearly a decade.

Easy-access accounts are also now pushing 2 per cent, a nine-year high.

It comes amid a frenzy of rate rises from small banks and building societies, with more than 250 increases announced as providers battle to top the best-buy tables. 

Top rates: One-year fixed deals currently include 3.1% with QIB Bank, and 3.05% with Charter Savings, Shawbrook, Ahli and Allica

Top rates: One-year fixed deals currently include 3.1% with QIB Bank, and 3.05% with Charter Savings, Shawbrook, Ahli and Allica

Top rates: One-year fixed deals currently include 3.1% with QIB Bank, and 3.05% with Charter Savings, Shawbrook, Ahli and Allica

But big banks are refusing to join in, protecting their profits by passing on very little extra to hard-pressed savers.

Top one-year fixed deals include 3.2 per cent with Atom Bank, and 3.05 per cent with Charter Savings, Shawbrook and Allica.

Yet even with a top payer, the value of your money is still falling fast because inflation has soared to 10.1 per cent a year, the highest level for four decades.

If you choose to leave your cash in a popular instant-access account with High Street giants Barclays, Lloyds, NatWest, HSBC, Santander or Halifax, you will suffer worse as they only pay between 0.1 per cent and 0.4 per cent. 

These big players have passed on less than a third of the 1.65 percentage point increase in the Bank of England base rate since December to hard-pressed savers.

Big banks’ fixed-rate bonds are also poor value. The best one-year deal is 1.4 per cent from Santander, less than half what you can earn elsewhere.

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This post first appeared on Dailymail.co.uk

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