There are 1,700 savings products on the market in July, marking its highest point since January 2016.

Live products have jumped by 262 from the all-time lows seen in November 2016. In January this year, the number stood at 1,495, according to Moneyfacts data.

The data research firm said that alongside the increase, savings rates are also enjoying an upwards trend.

In the fixed rate market, challenger banks are competing heavily. Of those challengers that have been in the market for a while, their older fixed rates are starting to mature. As a result, savers coming to the end of their deals may be tempted to look elsewhere but the challengers are opting to launch new deals or up their rates to stay competitive.

Charlotte Nelson, finance expert at Moneyfacts, said despite the significant increase in choice, savers looking for worthwhile deals still have to contend with rising inflation and little difference between the interest rates on offer from the best deals.

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“Until something forces the main banks to join the fray again, this feeling is likely to remain. With the Bank of England asking banks to increase their capital buffers, this may act as the catalyst for the main banks to start offering savers better deals. However, as banks have some time to obtain the additional capital, it is unlikely that savers will see a dramatic increase in rates anytime soon.

“The green shoots in the savings market are unlikely to stop the fall in household savings as those who are still able to save find it near-impossible to obtain accounts that beat the rising inflation rate. However, savers sitting on accounts paying next to nothing would be wise to take advantage of the extra choice and shop around to find a better deal.”