A new base rate-tracking Isa has been launched by Lloyds TSB.

The Cash Isa Saver is available to both new and existing Lloyds TSB customers and has a rate of 2.35 per cent – 1.85 per cent above the current 0.5 per cent base rate.

Available from yesterday (October 3rd), the bank claims that the new product will help savers get the best returns on their cash.

Greg Coughlan, head of savings at Lloyds TSB, said: "We understand savers are eager to get the most out of their savings but are uncertain what to do with the continued speculation that interest rates will change."

The account will track the base rate for 12 months, requires a minimum opening deposit of £1 and adheres to the maximum Isa allowance of £5,340.

Customers can access their account via the internet, in branch or over the telephone.

Recently, Lloyds TSB claimed that a quarter of UK parents open their child's first savings account before they reach the age of two.

Use the Myfinances.co.uk comparison tables to find the best deal on a new savings rate