Almost one in five (17%) savers are still not beating inflation with the rate paid on their main account below the current 2.2% level of consumer price inflation, Investec Bank has found.

The finance group’s new research revealed that under-25s are most likely to be receiving a rate of less than 2.2% on their savings, with 28% of those between 18 to 24 failing to beat inflation.

This compared to just 13% of those aged 55 and over.

The survey of 1,106 adults also found that 39% questioned said the rate they receive on their main savings account is 4% or higher.

However, one in six (16%) said they don’t know the rate on their main savings account, while over a fifth (22%) said they never check the rate paid on their main savings account.

Investec found that in general, savers are not as focused as they might be on beating inflation, with two in five (40%) admitting that they do not ensure, where possible, that the rate on their main savings account is above inflation.

Many savers do not regularly check to ensure that the rate they receive on their main account is competitive, with a quarter (24%) admitting that they only check the rate their cash is earning every three months or more.

Head of retail savings at Investec, David Hunt, said: "Inflation has dropped quickly throughout this year, so it is understandable that many savers have not checked that they are beating inflation.

"However, with inflation at 2.2% the Bank of England has started cutting the base rate. Savers could benefit from paying more attention to the rate they are receiving on their savings so that it is competitive with others in the market.

"It is worth taking some time to check the market and switch accounts to new providers if the rate you are receiving does not match other accounts available."

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