Three-quarters of savings accounts pay less interest than the current base rate of 4 per cent, new data shows.

The average interest rate on cash savings accounts is 3.44 per cent, having fallen to the lowest level since June 2023, according to Moneyfacts.

The downward spiral for savers has been mounting in recent months, with the average rate on cash savings last above 4 per cent in January 2024. New Feature

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Adam French, head of news at Moneyfacts, said savers face a “tough market” in their search for real returns.

He added: “Savers must also be aware that table-topping rates may not tell the full story.

“Several providers offer accounts with short-term bonus rates designed to attract new customers who are hunting the best returns

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