[Cherie]

For the past decade, low interest rates have meant those with money in savings accounts have seen poor returns from their money.

However with the Bank of England predicted to raise the Bank Rate from 2.25pc to 5.75pc in 2023, savers could be in for a windfall of around £700, according to Moneyfacts, an analyst.

If this 3.5 percentage point rise was passed on, the average easy-access rate would rise from 0.95pc today to 4.45pc.

This would mean annual returns on a £20,000 deposit would rise from £190 a year to £890, an increase of £700, the firm said. If savings rates were to hit 5pc, savers would enjoy a £1,000 return.

A new best one-year bond, offered by the Newcastle Building Society, launched yesterday and pays 4.1pc on deposits of up to £250,000.

Rachel Springall, of Moneyfacts, said: “Savers may be pleased to see rates rise at a positive pace so it’s vital they review their existing pots and take advantage of the new top rates on offer today.

“As interest rates are forecasted to rise even further, savers will need to be sure the interest they earn on their savings is protected from tax, so that means staying within their personal savings allowance or making use of an Isa.

“Keeping on top of the latest deals is essential as some banks are repricing frequently to jostle their market position.”