Figures published today show the consumer price index (CPI) fell to 2 per cent in July, down from 2.4 per cent in June. However, not one standard savings account can beat its eroding power.

That’s despite a notable improvement to the top savings deals since last month.

Today, the most savers can earn is 1.72 per cent from UBL UK and that’s if they tie their money up for five years, according to data from Moneyfacts.

Rates have started to improve across the board, notably in the popular easy access space where the market leader Tandem Bank is offering 0.65 per cent, the highest rate since the start of the year.

In comparison, most high-street banks pay a paltry 0.01 per cent on easy access accounts.

Rachel Springall, finance expert at Moneyfacts, said: “There has been a notable uplift to market-leading savings rates on offer since last month across various types of accounts and terms, which is positive to see. However, inflation is eating its way into savers’ hard-earned cash and with the expectation for it to rise, its eroding power will not be easing any time soon.

“Savers would be wise to not let this deter them from finding a more attractive rate, as deals are improving, and they may miss out on a market-leading rate if they become apathetic.”

Advice for savers

To mitigate the impact of inflation, Springall recommends switching to accounts offering a more attractive return. She also suggests considering more unfamiliar brands as they continue to inject competition into the savings market.

According to Moneyfacts, the best rate on a one-year bond is 1.31 per cent from Tandem Bank.

Atom Bank is offering the top-paying two-year and three-year bonds, at 1.43 per cent, and 1.52 per cent respectively.

The market-leading four-year bond is from JN Bank and pays 1.55 per cent.