Savings rates have continued to climb as the competition to attract and retain customers intensifies.
New best buy deals have been announced across the board this week with one bank increasing rates on its products four times since Monday.
SmartSave Bank, the lender in question, was offering a one-year fixed deal at 5.31% on Monday but this had risen to 5.43% by the end of the week.
Other notable increases included OakNorth to 5.42% and Atom to 5.4% and even largr banks are offering rates that would have been unthinkable just one year ago.
Investec has a fixed rate bond paying 5.35% rate, Al-Rayan Zopa at 5.38% and London-listed Close Brothers at 5.36%.
Rachel Springall, an analyst at Moneyfacts, said: “Shorter-term fixed savings accounts can be a preferred choice amongst savers right now, however, typically a longer-term fixed bond is more attractive if there is an expectation for interest rates to plummet.”
Economists this week predicted the Bank of England will have to lift base rates to 6% to stop the rise in inflation.
UK gilt yields, which are used by many banks as a reference point for their pricing, have also hit their highest level since the 2008 financial crash.
Investec has also launched a three-year fixed rate offer at 5.67% with a minimum deposit of £1,000, suggesting it thinks rates are not going to come down soon.
Higher interest rates however have been causing chaos for borrowers and especially those with mortgages coming up for renewal.
HSBC for example has pulled and repriced its mortgages twice in a week.
For savers, however, the opposite is true with one expert describing the battle for savers’ cash currently as “extraordinary”.