People who have an open savings account warned to act 'now'

Rachel Springall, finance expert at MoneyFactsDaily, said savers may wish to "act quickly".

People who have a savings rate are being warned to lock in NOW. Savings rates have fallen since August when the Bank of England cut its base rate from 5.25% to 5% and lower inflation could signal an end to competitive savings rates.

Rachel Springall, finance expert at MoneyFactsDaily, said savers may wish to "act quickly". She explained: "Those looking for guaranteed return may wish to act quickly to grab a top rate as there are expectations for interest rates to come down over the next couple of months."

"Savers need to prepare themselves for interest rate cuts, so if fixed-rate bond or fixed Cash ISA rates plummet, savers may wish to choose a longer-term deal to secure a competitive rate for the next few years," she commented today.

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Ms Springall said: “Challenger banks and building societies continue to offer some of the top returns and have the same deposit protections in place as the more familiar high street banks, so there is little reason to overlook them in favour of a well-known brand.

"Whichever account savers decide to open, its essential they pick one that suits their needs, but if it’s an easy access account, make time to review the rate regularly.” The best deal is from Market Harborough Building Society which offers 4.61 interest over a two year period.

However, you will have to invest a minimum of £10,000. Interest on this deal is paid yearly. A savings account is simply a place for you to put your money and earn some interest, according to BBC and ITV star Martin Lewis' team at Money Saving Expert (MSE).

Savings interest will be paid to you tax-free and most savers won't pay any tax on the interest they earn. Basic-rate taxpayers can earn £1,000 a year in interest tax-free, and higher-rate taxpayers £500