Ms Coles said: “Even those who are managing to avoid dipping into savings are watching the spending power of their money disappear as savings rates fall behind inflation: 17 percent said their savings were losing value.

“It’s just not possible to keep pace with inflation in any savings account at the moment, but that doesn’t mean you should resign yourself to a miserable high street account paying a fraction of one percent.

“There are competitive easy access deals paying over two percent, and if you can afford to tie some of the cash up for a few months or even a year, you could make up to 3.4 percent.”

In light of the rise in the cost of living, the finance expert warned that many savers are “running out of road” as interest rates fail to keep up with inflation.

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