The average accessible savings rate has improved to its best level in more than a decade, according to Moneyfacts.
Savers can now earn 1.16% annual interest on an easily accessible account in the market, the site said.
It is the highest average rate available since recording a model return of 1.19% in February 2009.
A year ago, the average easy-to-access savings account paid just 0.19%.
The increase means that a person who pays £1,000 for a year could end up with £1011.60, based on the current average savings rate that is easily accessible.
A year ago, they could have ended up with £1001.90 if they had kept the money saved for 12 months.
The improvements are still well below the rate at which inflation is rising, but by choosing a good savings deal, savers can at least offset some of the eroding effects of inflation on their money.
The Bank of England’s policy rate has taken many steps upwards in recent months. This has led to improvements in savings accounts, while borrowers’ costs have been increasing.
The average rate on savings accounts where you must give notice to access funds is now 1.91% — the highest rate since December 2008 when it was 2.64% — according to Moneyfacts data.
The easily accessible Isas in the market now pays 1.26% normally – the highest rate since the 1.28% rate in November 2013.
ISA notification rates are at a typical 1.72% – the highest level since the 1.75% rate in July 2013.
The average one-year fixed bond rate has risen to 3.29% and stands at its highest level since January 2009, when it was 3.49%.
Isa’s one-year flat rate is now 2.98% – its highest point since May 2012 (3.02%).
The figures are “evidence of the positive trend in the cash savings market, with further hikes expected due to the higher Bank of England policy rate,” said Rachel Springall, financial strategist at Moneyfacts.
She said smaller “competing” banks have helped fuel competition, particularly in the fixed-bond market.
Springall added: “As the cost of living crisis continues, quick access to cash can be invaluable, and accounts such as an accessible account can provide that flexibility.
“As the savings market remains volatile, consumers and service providers will need to act quickly to follow up on any outstanding offers.”