But accounts at major banks have lagged behind the best rates, leaving millions of savers in low-paying accounts.
Sarah Coles, of Hargreaves Lansdowne, said: “The impact has not been felt across the board, because the big banks have been very slow to pass on interest rate increases. It took an average of 11 weeks for them to budge after the first six rate hikes.
“Smaller, newer banks and cash savings platforms have done more for savers’ money, but have been hampered somewhat by the power of the giants,” she added.
The financial regulator, the Financial Conduct Authority (FCA), along with senior politicians including Chancellor Jeremy Hunt, has relied on big banks to do more to pass on the increases to savers.
But despite competition from smaller rivals at the top of the market throughout the year, it was the big names that launched the best accounts.
National Savings and Investments (NS&I) led the market with an interest rate of 6.2% year on year, which proved very popular.
The prize pool on offer for Premium Bonds, the country’s favorite savings product, has been increased, and the odds of winning have been shortened, making winning each month more likely.
But the Treasury-backed body did not raise its fundraising targets in the chancellor’s autumn statement, and experts warned it was likely to cut interest rates on its offers.
NS&I has already cut supply on “green savings bonds” by 30% – and the rest of the market is following suit.
Santander launched an accessible account with 5.2% interest in September, its best deal in 14 years, before withdrawing the rate just a week later.
In fact, savings rates this year have been so attractive that even medium-sized savers have been warned they could be hit with unexpected tax bills.
Up to 2.7 million people will need to pay savings tax in the current tax year, according to a freedom of information request submitted by AJ Bell. This is up from 1.8 million in the 2022-2023 tax year.