Savings rates are falling in order to fund mortgage cuts, according to financial information provider Moneyfacts.
Since November 2009, rates on a one-year bond have fallen by 0.65%, by 0.25% on a two-year bond, by 0.10% on a three-year bond and by 0.60% on a four-year bond.
Moneyfacts said providers cannot seem to offer competitive mortgage and competitive saving deals at the same time.
Michelle Slade, spokesperson for Moneyfacts, said providers have now moved their focus from the savings market to the more profitable mortgage market.
He added: “The frozen money markets and requirements on providers to hold more capital reserves pushed savings rates upwards during last summer and autumn, but the demand for deposits appears to have eased and rates are now falling.”
