Financial services firms who offer many similar deposit accounts may confuse customers and actually discourage them from saving, according to one consumer advising company.

Data from Moneyfacts, taken from a University of East Anglia (UEA) and University of Surrey study, revealed converted building societies have introduced and withdrawn deposit accounts with far greater regularity than other financial services firms.

Between 1993 and 2004, 1018 new deposit accounts were introduced in the UK and 769 accounts withdrawn.

Most high street banks launched just eight to 12 new accounts over the period but other financial services companies introduced an average of 24 new deposit accounts, with some firms launching in excess of 40 new deposit accounts.

"While customers relish more choice, picking between such a vast number of similar products is hard for many customers," said Dr John Ashton based at the UEA.

"Introducing and withdrawing savings accounts with such regularity makes the UK savings market difficult to comprehend and use."

Due to the large number of additions to the market, most new products are far from pioneering and usually only slightly different to existing deposit accounts, according to the research.