The average easy-to-access savings rate has improved to its best level in more than a decade, according to Moneyfacts.
Savers can now typically receive 1.16% annual interest on an easy-to-market account, the website said.
This is the highest average rate available since a typical return of 1.19% recorded in February 2009.
A year ago, the average easy-access savings account was earning just 0.19%.
The increase means someone setting aside £1,000 for a year could end up with £1,011.60, based on the current average easy-to-access savings rate.
A year ago they should have been left with £1,001.90 if they had kept the money saved for 12 months.
The improvements are still well below the rate of increase in inflation, but by choosing a good savings offering, savers can at least offset some of the eroding effects of inflation on their cash flow.
The Bank of England’s key interest rate has taken many steps upwards in recent months. This has led to improvements in savings accounts, while costs for borrowers have increased.
The average rate on advance notice savings accounts to access money now stands at 1.91% – the highest rate since December 2008 when it was 2.64% – according to data from Moneyfacts.
Easy-to-market Isas now typically pay 1.26% – the highest rate since a rate of 1.28% in November 2013.
Note that Isa rates have reached 1.72% in general, the highest level since a rate of 1.75% in July 2013.
The average one-year fixed bond rate rose to 3.29% and is at its highest level since January 2009, when it was 3.49%.
And the standard one-year fixed Isa rate now stands at 2.98%, its highest level since May 2012 (3.02%).
Rachel Springall, finance expert at Moneyfacts, said the figures “are evidence of the positive direction of the cash savings market, with further rises expected due to the rise in the Bank’s base rate. England”.
She said smaller “challenger” banks have helped fuel competition, especially in the fixed bond market.
Springall added: “As the cost of living crisis continues, quick access to cash could be invaluable and accounts such as an easy access account can provide that flexibility.
“As the savings market remains volatile, consumers and providers will need to act quickly to stay on top of all important offers.”