Savings rates are now moving up as banks compete for market share, said Ms Chuin Ting Weber, chief executive and chief investment officer of MoneyOwl, who added that lenders are trying to build deeper relationships with customers so that they can sell them more financial products.

Ms Weber noted that customers usually have to do something that is revenue-generating for the banks, such as buying insurance or investment products, if they want to access the high headline interest rates.

She does not recommend that customers go looking for the most attractive savings rates because any incremental increase is just so small, noting that they could end up buying an unsuitable product and lose more in fees and commissions than would be gained from a higher interest rate.