This is the first time a one-year fixed-rate account has paid 5% or more for 14 years.

This is a 11% increase in a month, with the best buy one-year account in April paying 4.51% interest, according to data from Moneyfacts.

The bank has launched five fixed-rate accounts, all paying 5%, which have shot into the top of the tables for the one, two, three, four, and five-year fixed-rate accounts.

The last time an account in the two, three, four, and five-year tables paid 5% or more was November 2022.

It follows successive rate rises by the Bank of England (BoE) which have seen providers increasing the rates paid on savings accounts.

A month ago in April, the best buy one-year account paid 4.51% from SmartSave and it required a £10,000 investment, according to Moneyfacts. While just five days ago, the best buy account paid 4.80%.

The last time a 12-month account paid 5% or more was 2009 and it was from ICICI Bank UK paying 5.10%.

The accounts are provided by the Turkish bank, Isbank, via Raisin. For the one-year account, a minimum of £1,000 must be deposited to open the account. It can be opened online, and also operated by post or the phone.

The majority of providers at the top of the tables are challenger banks, while the main high street banks have been criticised for not passing on rate changes as quickly.

‘Hard to predict if rates will be surpassed by higher returns’

Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “It is hard to predict whether the latest top rates will be surpassed by higher returns in the coming days, as there is currently a difference of around 0.30% from the top place and tenth place one-year fixed term deal today.

“The Bank of England base rate rises and competition among savings providers has led to higher returns over the past year and, compared to a year ago, savers get a return of almost 3% more on the top one-year fixed bond.

“While there are other longer-term interest rates to consider, there may well be a dividing sentiment among consumers and providers as to whether interest rates are destined to reduce in the months to come. It will be interesting to see how the top rate deals fluctuate and how demand impacts the shelf life of the best deals over the next quarter.”