The majority of savings accounts are failing to give a real rate of return to basic rate taxpayers, research from Defaqto shows.

Just six out of the 1,999 savings accounts available give a rate of return based on the Consumer Prices Index (CPI), while only five do so based on the Retail Prices Index.

Furthermore, 40 per cent and 50 per cent taxpayers have a choice of just two cash ISAs to beat inflation based on CPI.

David Black, Defaqto's insight analyst for banking, said: "To get the best available returns, savers need to review their savings on a regular basis. In particular, people should look to use their ISA allowance."

He urged people to consider taking advantage of introductory bonuses and guaranteed minimum rates on savings accounts in order to make the most of their cash.

Fixed-rate bonds, on the other hand, may be the best option for long-term savings.