July 24 2014 Latest news:

A record number of savings accounts are now on the market, with consumers never having had such a wide choice of homes for their money.

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The tally of accounts available to personal, business and offshore savers stands at nearly 2,400, compared with the 203 that were available when data-crunchers Moneyfacts.co.uk started recording the numbers in 1988.

“Over the years, the savings market has developed to take into account the different needs of savers,” said Michelle Slade, an analyst at Moneyfacts.

“Since the start of the credit crisis, savers’ deposits have become increasingly in demand amongst providers looking to use in-house sources of funding for lending rather than entering the money markets.

“This increased competition for savers’ deposits has led providers to branch out into new markets, particularly the longer-term fixed-rate market.”

But Miss Slade said that although many providers were paying a premium to attract savers’ deposits, that situation could change in the future.

“It could well be that some providers opt to pass on only part of any future Bank of England base rate rises to savers in a bid to reduce this margin,” she said.

Meanwhile, despite the much wider choice on offer, most savers are feeling the pinch because there are virtually no accounts available that give a real return once tax and the soaring rate of inflation are taken into account.

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