Do you have one of these popular savings accounts? Beware your nest egg being destroyed: SYLVIA MORRIS

Savers have been hit by a double-whammy – a rise in the cost of living and falling interest rates.

Official figures put inflation at 3.8 per cent, its highest level since January last year. And savings providers have been quick to pass on rate cuts to their customers since the Bank of England base rate fell from 4.25 per cent to 4 per cent.

As a result, there are millions who are earning just up to 1 per cent on their money, the lowest rate for over two years. Your money is devaluing at the rate of 2.8 per cent a year – while prices are going up by 3.8 per cent.

This can happen on standard easy access savings accounts and cash Isas, and savers must beware the trap. 

If you are with Halifax Everyday Saver, Instant Isa Saver or Isa Saver Variable, you should know that the bank cut the rate on those accounts last week.

Lloyds Easy Saver, Cash Isa Saver and Instant Cash Isa went down to the same level. Both pay this rate on up to £25,000 and only 1.05 per cent on larger balances. Santander also pays 1 per cent on its Everyday Saver, Instant Saver, Easy Isa and Isa Saver, as does Cahoot on its Savings Account.

There are millions who are earning just up to 1 per cent on their money, the lowest rate for over two years, writes Sylvia Morris

TSB Easy Saver Account and Cash Isa Saver pay the same 1 per cent if you have been with them for over a year, and the bank plans to change the rates following the August base rate change. However, Metro Bank is even worse at 0.9 per cent on its Instant Access Savings and Instant Access Cash Isa.

National Savings and Investment (NS&I) tells me there are 1.4million savers in its Investment Account, which pays just 1 per cent. There is over £1.5billion in this old postal account, with huge balances of £50,000 or even £100,000.

Check that your family and friends are not among them. If nothing else, get them to move to NS&I Direct Saver, the online and telephone account. 

It only pays 3.3 per cent (and this is likely to be cut soon), but at least they can treble their interest.

Some providers have dished out harsh cuts, including Atom Instant Saver Reward (down 0.58 per cent points to 3.93 per cent), Cynergy Bank Online Isa (down 0.3 to 3.9 per cent) and Coventry 6 Access Isa Online (down to 3.65 per cent).

Only one in ten variable rate accounts now pay over 4 per cent, says data scrutineer Moneyfacts. Top picks include Spring app-based account at 4.3 per cent and Charter Savings at 4.31 per cent on its Easy Access Issue 63.

Cahoot Simple Saver offers 4.4 per cent, but move your money after a year or end up in its savings account paying 1 per cent.

On easy access cash Isas the best rates are 4.31 per cent from Charter Savings Bank and 4.18 from Ford Money. Family BS Market Tracker Cash Isa pays 4.3 per cent, but these rates will change on October 1.