Savers can breathe a sigh of relief as banks and building societies are being forced to offer better interest rates in order to secure business, according to a report published today.

The latest monthly Treasury Report on UK Savings from Moneyfacts, the data firm, states that the majority of savings accounts pay well above the Bank base rate of 0.5 per cent.

Of the 2,265 savings accounts available to customers at the end of June, over half of them – 55.3 per cent – had interest rates paying above 0.5 per cent. The average no-notice account currently pays 0.8 per cent and the average one-year fixed rate pays 3.04 per cent. This is nevertheless a far cry from last summer, when savers had a pick of one-year deals paying up to 8 per cent.

According to Moneyfacts data, the best one-year bond currently available is the Post Office one-year Growth Bond, which pays 3.85 per cent interest on deposits of £500 or more. The best internet account, available from today, is the Saffron building society Online Goal Saver, offering 2.8 per cent on deposits of £10 or more.

Darren Cook, analyst at Moneyfacts, said: “Providers are asking their savers to commit their money for a much longer period, and the only way they can do this is by offering premium rates in return.

“The savings report confirms that the average long-term fixed-rate is 3.51 per cent, which is one of the contributing factors to why we are seeing higher mortgage rates for new borrowers.”

Indeed, the respite for savers does not extend to mortgage customers. Last month, Moneyfacts reported that rate hikes in June caused the shelf-life of a fixed-rate mortgage deal to fall from 23 days to just 14. This window is forecast to fall further, as lenders pull mortgages when they reach the top of the best buy tables to avoid a run of business.

The average two-year fixed rate home loan also rose from 3.98 per cent to 4.47 per cent in June.

The Monetary Policy Committee is not expected to change the 0.5 per cent interest rate level when it holds its monthly meeting on Thursday.