Savers left out in the cold

So far, rates have been cut on just 22% of variable rate savings products, with most providers opting to pass on the full 1.50% cut or more.

If the remaining providers pass the cut on in full, then based on a £5K balance we could potentially end up with 12% of the market paying no interest whatsoever, 27% paying a rate of less than 1% and a staggering 52% paying a rate of 2% or less.

Michelle Slade, analyst at Moneyfacts.co.uk, comments: "With mortgage lenders not passing the cut on in full, savers were hoping that they would get off lightly, but so far their optimism has been misplaced.

"At the start of the month, there was an abundance of accounts paying well over 6%. These are now disappearing fast and will no doubt be gone by early next week as more cuts are announced.

"It is now more important than ever that savers review the rate they are getting, as with over half the market possibly receiving a rate of 2% or less, they could be left seriously out of pocket.

"Rates of over 5% may still remain, but these will be few and far between.

“With banks still remaining wary about lending to each other, their savings book will remain an important part of their strategy.

"They will not want to drive their savers into the arms of their competitors, so hopefully we may see other providers restricting the cuts they make."