It plans to launch more simple savings accounts next year and already offers loans and store cards.

Unlike the majority of savings deals offered by banks in the UK, your cash – up to £75,000 – is not protected under the UK Financial Services Compensation Scheme for if a bank or building society goes bust.

Instead, it comes under the European scheme, where the maximum is €100,000 (around £72,000).

Similarly, another top payer, RCI Bank, which pays a slightly higher 2.7 per cent for three years is also covered by the European scheme.

The top one-year deal comes from United Trust Bank, with its rate for new savers to 2.15 per cent from last week.

In the High Street, the best you can do is 1.85 per cent with Yorkshire BS’s bond, which launches tomorrow. It is also available from its offshoots, Chelsea, Barnsley and Norwich & Peterborough.

For two years, the best rates come from RCI Bank and Harrods Bank, both at 2.35 per cent, while on the High Street, the top deal is 2.1 per cent from the Yorkshire BS.

On fixed-rate cash Isas, the best one-year deal comes from AA Savings at 1.76 per cent and Tesco Bank at 1.75 per cent.

For two years, you can earn 2.01 per cent with AA Savings or 2 per cent with Shawbrook Bank or Principality BS.

Savers need to be quick to snap up these top rates. Smaller banks and building societies only want to attract a relatively small amount of money.

As a result, their top deals do not stay around for long – in some cases, no more than a week.

Meanwhile, larger banks continue to cut their rates. Last week, Halifax, one of the biggest, cut the rate it pays on its one-year bond to just 1 per cent – less than you can earn on easy-access accounts with more generous providers.

Its three-year deal pays just 1.6 per cent. It also cut its cash Isa rate to a tax-free 1 per cent for one year and 1.25 per cent for two years.