Unless you have been in hibernation, we all know what has happened to interest rates, and therefore returns on cash deposits, in recent times. The low interest rate environment coupled with rising inflation has seen negative real returns in the last year or two.

However, it is only now that this is starting to hit home for many beleaguered savers as their cash in fixed-rate accounts starts to mature. They should brace themselves for a slump in future returns.

According to HSBC research, more than 4.7 million fixed-rate accounts worth £92 billion are maturing this year. The problem is, however, that returns available now are significantly below those offered a few years ago. Indeed, the best-buy returns on a three-year account available today will be 36 per cent lower than those invested three years ago.

The average investment in a three-year bond in 2008 was £20,897. The best-buy rate back then was 7.1 per cent and would have earned £4,138. The same amount invested this year will earn £2,640 in 2016 using the rate of 4.3 per cent offered by Secure Trust Bank (this account has a minimum deposit of £1,000 and is only available by post or phone).

It is a similar story for five-year accounts where deposits will earn 26 per cent less over the next five years compared with those maturing this year.

People should consider all options before simply re-investing in a similar account. Locking into longer-term accounts as interest rates are anticipated to start rising next year should be guarded against.

Nationwide has the most competitive instant access account at present at 3.05 per cent on at least £1,000 with a 1.51 per cent bonus for twelve months. The best-buy one-year account is from Aldermore at 3.55 per cent on £1,000. Newcastle Building Society introduced a five-year account at 4.2 per cent this year with penalty-free access after one year provided 180 days notice is given.

However, are there better opportunities out there? No doubt opportunity and possible reward bring risk with them but some asset classes are doing well in the current environment. Not far from the opposite end of the risk spectrum to cash is the UK Smaller Companies sector which has been a surprising one so far this year despite the weakness of the economy and equities in general.

The FTSE 100 index of Britain’s largest companies closed at 5,715 last week (its fourth weekly loss) as worries about a Greek default and the slowing economy weighed on markets. The index has now fallen three per cent since the start of the year.