The M&S account was the last remaining 5% regular savings deal after HSBC and First Direct slashed rates last month.

Regular saver accounts are available to customers with a current account with the same institution.

With a regular saver account, you commit to paying in a certain amount each month. In return, the bank or building society gives you a higher interest rate than you’d get with their current account or ordinary savings account.

Existing M&S Bank customers will still receive 5% up to the end of their 12-month fixed term period.

Rachel Springall, finance expert at Moneyfacts, said: “Savings rates have been on a downward trend this year and this hasn’t escaped the attention of the regular savings account market, which isn’t usually very volatile.

“Providers are uncomfortable offering lucrative interest rates to savers, including guaranteed fixed interest rates applied on regular savings accounts.”

Alternatives for savers

The only way to earn 5% now is to opt for a high interest FlexDirect current account with Nationwide Building Society.

If you want to stick with a regular savings account, Monmouthshire Building Society and Saffron Building Society pay 3% fixed for 12 months but you can only save a maximum of £300 and £250 a month respectively.

Kent Reliance pays 3% variable but this is only available in branch. You can, however, save up to £500 a month with this account.