Dozens of high street banks and building societies have slashed rates on savings products, in a swift response to the Bank of England’s (BoE) decision to lower the base rate last month.

Nearly 40 providers have either reduced their rates or withdrawn products altogether, following the BoE’s quarter-point cut to 4.5%.

Despite these cuts, a number of savings rates still remain above 4.5%. However, experts urge savers to shop around for the best deals and review their accounts regularly, as many may still be sitting on products that fail to beat inflation.

Data released on Monday by the BoE showed that household deposits with banks and building societies increased by £8.4bn in January, following net deposits of £4.7bn in December.

Of that amount, £5.4bn came from additional deposits into interest-bearing sight accounts, which refers to those where the entire balance is accessible without penalty, either by demand or by close of business on the day following that on which the deposit was made, and where interest is payable.

Matthew Ford, CEO and co-founder of Sidekick, said: “The UK’s declining base rate coupled with the fact that the household savings rate in the EU sits at a three-year high has created a perfect storm for savers. The appetite to save is there, but it’s marred by widespread uncertainty around how to manage their cash.

“When faced with cuts, it’s vital to regularly review savings accounts. Check the interest rate that you’re getting on your savings and schedule regular reviews of the market using price comparison websites and best buy tables. As today’s cut proves, the market is very dynamic and competitive.”

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