This follows the Bank of England’s quarterly inflation report revealing that only 1.65% of savings accounts currently beat the Retail Prices Index (RPI) and just 2% beat the Consumer Prices Index (CPI).

There are currently 2,532 savings accounts currently available to consumers including cash ISAs. This report highlights that there are only 42 that currently beat RPI and 52 that beat CPI.

Teresa Fritz, from MoneyVista, said: “Now more than ever, it’s important to check what interest rate your savings account is paying.

“With inflation rising in October, the vast majority of savings accounts now pay interest well below the rate of inflation, meaning millions of savers are losing money in real terms.

“It’s essential for consumers to keep track of what rate they are getting and to be ready to switch, especially during these harder economic times.”

The report highlights that in the last five months, the savings market has contracted with the number of savings accounts available falling from 3,345 in mid-June to 2,534 in mid-November – a drop of 811.

Savers earning less than 3.25% after tax (4% gross) are losing money in real terms by keeping their savings ‘safe’ in the bank.