Customers are now being offered 1.21%, down from 1.45% on the Double Take E-Saver, which had previously been table-topping.

The account is easy access, but it limits withdrawals to twice a year including closure.

A spokesperson for Virgin Money said: “There has been a general decline in savings rates in the market in recent months, therefore, to enable us to remain in line with our competitors on the high street, it is necessary for us to reduce the interest rates on selected variable rate savings accounts.”

Rachel Springall of Moneyfacts said: “It will be disappointing news for savers to see these rate cuts by such a prominent brand but sadly a downward trajectory is the way savings rates are going across the market.

“This demonstrates how important it is for savers to keep an eye on the top rates and to proactively move around their money should they find their rate slashed.”

Alternative accounts

There are several easy access deals paying more than Virgin Money.

The top-payer is Marcus by Goldman Sachs, which offers 1.45% and unlimited withdrawals, but includes a 0.10% bonus for the first 12 months.

Shawbrook Bank offers 1.41%, with unlimited withdrawals. However, the minimum deposit is £1,000 compared with £1 with Marcus.

Yorkshire Building Society is offering 1.40% with a minimum deposit of £100 but withdrawals are only allowed on one day per year.

And Sharia-compliant Gatehouse Bank also offers an expected profit rate of 1.40%, with unlimited withdrawals.