Research by independent advice website, Savings Champion, has revealed 52% of these accounts currently paid less than the base rate and below Consumer Price Index (CPI) inflation.
The website has pointed to high streets banks as being ‘the worst offenders’, revealing rates as low as 0.05% were currently on offer from products such as HSBC’s Flexible Saver Account.
With savings account rates this low, Savings Champion warned, even a base rate rise would not be enough to inflate them to a near competitive level.
Anna Bowes, director of Savings Champion said: “Some of the rates on offer at the moment are absolutely shocking and the providers that dare to call these savings accounts should hang their heads in shame.
“Even if the base rate does go up in May, these accounts will still offer paltry returns and savers must not stand for it.
“Much better returns are now on offer right now – so make sure you shop around and move your cash and show these providers a clean pair of heels.”
Saving Champion explained that savers currently on a rock bottom account paying 0.05% could increase their interest by 1.25% AER – five times the base rate – by switching today.