Only a quarter of savings accounts are currently offering better rates than the Bank of England’s base rate, new data shows.

Despite the base rate being cut to 4 per cent last month, just 26 per cent of savings accounts are offering rates above this, according to data from Moneyfacts.

There are currently no types of savings accounts on the market where the average interest rate is above this, the data shows.

The top-paying accounts are one-year fixed rate ISAs, which currently pay an average of 3.91 per cent, which is still below the base rate.

The overall average savings rate fell to 3.46 per cent in August, with easy-access savings accounts typically paying just 2.59 per cent.

With inflation standing at 3.8 per cent , this means the majority of savers are effectively losing money

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