More than 50 savings accounts now pay less than half the rate of inflation

More than 50 banks and savings providers are offering accounts that pay less than half the rate of inflation , according to analysis.

Figures produced by Moneyfacts show that 53 separate savings providers are offering either an easy access, notice, fixed or cash ISA account that can pay less than 1.9 per cent interest – half of the current 3.8 per cent inflation rate.

The numbers include accounts where the interest rate can drop below this rate in certain circumstances , such as if savers withdraw too much money.

There are 156 providers in the UK market, which means around a third are offering accounts that may pay less than half the rate of inflation.

Someone with a savings account paying less than half of inflation would, in effect be losing money every month, because the spend