This latest intervention from banks and building societies, such as Nationwide and Santander, comes amid the growing cost of living crisis.

Earlier this month, inflation hit 10.1 percent and is forecast by some experts to exceed 18 percent next year.

Cameron Pally, the CEO of Pally Money, warned that inflation will continue to hurt the returns on savings accounts for the foreseeable future.

Mr Pally said: “The interest paid by high street banks won’t come close to beating inflation any time soon.