Teachers Building Society launches ‘highly competitive’ ISA with 3.75% interest rate

She explained: “Inflation isn’t going away quickly, running to double-digits for the fourth consecutive month, and with the cost-of-living crisis entering a second year the impact on household savings has started to kick-in, in earnest.

“Even if, as forecast, inflation subsides gradually through the year and annual inflation for 2023 comes in around seven percent- well below the current level- £10,000 saved in a best buy easy-access cash-based savings account today, earning three percent interest, would be worth around £9,580 in real terms by next January.

“This in anyone’s money is a significant loss of purchasing power at a time when many household staples are also doubling in price.”

The finance expert outlined why savers must prioritise putting their cash away for a rainy day and encouraged the “longer-term” investment of ISAs.