The bad news, however, is that the most attractive accounts often come with strings attached, and they also don't tend to stick around for long.
Here, Which? explains what's happening to the savings market, and reveals the hoops you might need to jump through to secure the best rate.
Savings rates are falling fast
Savings rates on both fixed and variable accounts fell during August. This is the first time all rates have dropped since the start of the year.
Providers have been slamming the brakes on fixed-rate accounts in particular over the past 12 months. Since September last year, the average one-year fix has dropped from 5.34% to 4.43%, and the average long-term fix (lasting more than a year) has dropped from 5.12% to just 3.99%, according to Moneyfacts data.
While this month's average instant-access rate of 3.07% AER is higher than the 2.95% recorded last September, it's still down on August's average of 3.14%. Worse rates could be yet to come if the base rate falls again before the end of this year.
Where can you still get 5% on your savings?
Our analysis of Moneyfacts data found just 3% of fixed and variable rate accounts currently on the market offer interest of at least 5%, compared to 44% of accounts this time last year.
There is currently only one 12-month fixed bond that pays at least 5% AER, and there are no long-term fixed bonds or restriction-free instant-access accounts offering interest that high.
However, savvy savers who are flexible about the terms of the account will have more luck. Here are our top tips to help you hunt down a 5% deal:
1. Look beyond the high street
Find out more:2. Be aware of access rules
Some top-rate products may limit the number of withdrawals you can make. In exchange, providers usually reward savers with a higher rate of interest.
Our analysis of Moneyfacts data found half of the current top 10 instant-access accounts limit the number of withdrawals you can make or the balance you must maintain before imposing penalties.
Of these accounts, Chip's Easy Access Saver is the only one that offers 5% AER, but it allows just three withdrawals a year without loss of interest.
3. Weigh up a notice account
Notice savings accounts work in a different way to instant-access deals. Instead of being able to withdraw your money when it suits you, you'll have to tell your provider in advance that you want to take any cash out.
Our analysis of Moneyfacts data revealed nine out of 10 top-rate variable deals are notice accounts, all of which offer rates of 5% AER or more.
However, these accounts are unlikely to suit you if you may need to get at your savings unexpectedly. If you do make an emergency withdrawal from a notice savings account, you're likely to lose some interest.
4. Fix for less than a year
Before the savings boom of the past two years, the general rule of thumb was that the longer you fixed for, the better the returns. That trend has now been turned on its head, and shorter-term bonds now promise the best interest.
Seven out of 10 market-leading fixed-term bonds are for less than a year and offer at least 5% AER.
This is because providers are currently adjusting rates based on what might happen to the base rate in the future. Banks don't want to be stuck paying 5% interest over the next few years if it looks like the base rate is going to drop to less than that well before the account matures.
Find out more:5. Look into accounts for existing customers
Some of the top savings accounts on the market are often reserved for existing customers of the bank or building society.
That usually means having a current account, but you may also be eligible if you have another financial product, such as a mortgage or investment account.
Ulster Bank's Loyalty Saver, for example, offers the best restriction-free instant-access account, with a rate of 5.2% AER. However, it's only available to people who already have an Ulster Bank current account.
Find out more: undefinedsource https://www.which.co.uk/news/article/savings-rates-tumble-how-to-get-more-than-5-interest-on-your-money-aNxr20q2KiZe