However, whether a saver beats inflation after tax will depend on the account used and their individual circumstances.
Caitlyn Eastell, Personal Finance Analyst at Moneyfactscompare.co.uk, said: “On a £10,000 balance, choosing the top one-year fixed rate over an account paying just 2% could leave savers around £315 better off in real terms over a year.”
Ms Eastell noted that volatile swap rates had driven fixed bonds to their strongest levels in years.
The best five-year bond now pays 5.37 per cent, compared with just 2 per cent in October 2021. On a £10,000 deposit, that gap could translate into roughly £1,950 more in interest over five years.
Savers who need ready access to their funds can also benefit from improved returns. The top easy access rate stands at 4.89 per cent today, a dramatic improvement from just 0.65 per cent five years ago.