Savers chasing the best deal for their cash can now earn almost as much interest on instant access as from locking into a one-year fixed rate.

The premium for tying up cash in a one-year bond has shrunk to its lowest since the spring, following the withdrawal of a market-leading 3.95 per cent bond by National Savings & Investments (NS&I).

The top instant access account, from Ulster Bank, part of Royal Bank of Scotland, pays 3.6 per cent and can be operated by telephone or internet.

This compares with 3.75 per cent on the highest remaining one-year bond, from State Bank of India. The Post Office offers 3.7 per cent, though deposits are held with Bank of Ireland and are covered by Irish government guarantee rather than the UK’s compensation scheme.

Kevin Mountford, head of savings at Moneysupermarket.com, the comparison service, said that one-year fixed rates are offering savers little incentive to lock away their cash. Instead, he said, savers should wait for more competitive offers or consider two-year deals paying up to 4.25 per cent.

Analysts said that the early withdrawal of NS&I’s bonds highlighted the importance of moving quickly to take up new offers. Fixed-rate bonds are now open for only 23 days on average, according to Moneyfacts, the rate monitoring service.

Top savings deals continue to offer record rewards over the 0.5 per cent base rate and, even with the rise in inflation announced this week, give many of these accountholders their highest real returns in years.

Analysts said most accounts would not be paying a real return after tax when compared with the consumer price index (CPI), which increased to 1.5 per cent in October.

However, relative to minus 0.8 per cent retail price index (RPI) inflation, real returns have rarely been higher for savers earning 3 per cent-plus.