The first six weeks of 2010 has proved disastrous for savers, with record increases in inflation and the average rate of the top five savings accounts falling to just 2.89 per cent from 3.04 per cent at the turn of the New Year.

According to Moneysupermarket.com, eight of the top 10 deals have seen their rates fall, or have been pulled entirely, leaving savers with scarce options for their money.

Savings rates reached a peak in mid-October with the best product – Citibank Flexible Saver Issue 6 – offering 3.30 per cent and the average of the top five deals hitting 3.17 per cent.

With basic rate tax payers needing an account paying at least 3.63 per cent to gain benefit in real terms from their savings due to inflation, there is very little choice for savers, especially now rates are starting to fall.

Kevin Mountford, head of savings at moneysupermarket.com, said: “This sudden fall in savings rates will have caught many by surprise, and coupled with December’s unexpectedly sharp rise in inflation means 2010 looks like it may be a difficult year for savers.

"There has been a good deal of public debate around the treatment of savers recently, but these moves seem to suggest things won’t be getting much better in the near future for this marginalised group.

Mountford said that with the best deals disappearing daily, it’s vital consumers keep an eye on the best buy tables and check the small print behind any good rate advertised, especially in the run-up to this year’s Isa season.

He added: "It’s becoming increasingly common for some of the better deals to be offered by your existing bank but this could involve tying your money in for long periods so it pays to check all the details first."