The mutual’s move follows the announcement last week that Nationwide Building Society planned to increase the interest rate it paid on its Start to Save 2 account to 5% in December.

Earlier this month, the Bank of England raised its lending rates by 0.75 percentage points to 3% as it tried to stem raging inflation amid warnings about a deepening recession. Lenders followed suit, raising what they charged to lend money, but now are also starting to increase the amount they pay to savers.

A sampling of the rate hikes planned by Leeds includes:

•  Access Saver: Rates to increase from 1.15% to 1.45%
• Limited Issue Online Access Account: Rates to increase from 1.4% to 1.6%
• Limited Issue Online Access ISA: Rates to increase from 1.46% to 1.66%
• Dinosaver: Rates to increase from 2.90% to 3.65%
• Child Trust Fund Bonus Saver:  Rates to increase from 3.50%  to 4.25%

Matt Bartle, director of products at Leeds, was quoted as saying: “The recent increases in bank base rates is really good news for savers. As we approach the end of the year, it’s a great time for savers to review their savings accounts so that they know they are in the most appropriate, and best paying, account for their current needs.”

Related: Look for ways to maximise your rate without locking your funds away for years and years.