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Investec has unveiled research showing increasing numbers of banks and building societies are using bonuses to boost their headline interest rates.
The private bank, which is promoting its High 5 savings account, is warning savers that these bonuses have a limited life span as they are often only paid for short periods.
Investec's research found the average bonuses being paid on savings accounts for balances of £25,000 was 0.97 per cent between February 1st and May 1st this year.
This compared to 0.84 per cent three months ago.
And Linda McBain, head of banking at Investec, said banks and building societies were using bonuses in a bid to stand out in a competitive market.
But, she added: "Savers need to be aware of the size, longevity and conditions of such offers and be prepared to switch to another account if they are not being paid a consistently attractive rate of interest."
Ms McBain said the High 5 account, which requires a minimum deposit of £25,000 to open, did not rely on bonuses to provide attractive returns.
It tracks the UK's top savings accounts and provides a variable rate of interest based on the average rate of those products.
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