Cash ISA rates recover from record lows

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Rachel Springall, Press Officer
Rachel Springall, Press Officer / Finance Expert T: 01603 476210 E: Email Rachel
15/11/2021

Cash ISA rates recover from record lows

Cash ISA rates recover from record lows

Moneyfacts UK Savings Trends Treasury Report data reveals average ISA rates rose across the board month-on-month, with the average notice ISA rate moving away from a record low.

 

Moneyfacts UK Savings Trends Treasury Report data reveals average ISA rates rose across the board month-on-month, with the average notice ISA rate moving away from a record low.

 

  • All average ISA rates have now moved away from record lows. The average notice ISA rate rose to 0.37%, the first rise since September 2020. Average no notice ISA and both the one-year and longer-term fixed ISAs rose month-on-month.
  • ISA product choice improved for a seventh consecutive month, to 382 deals, the highest seen since March 2020 when there 417 deals.
  • The average easy access rate rose to its highest level during 2021, to 0.19%. The average notice rate rose for the seventh month running, now 0.55%, its highest point since June 2020 when it was 0.69%.
  • The average one-year bond has reached its highest level since June 2020 when it was 0.86%, and the longer-term fixed bond rate has risen to its highest level since May 2020 when it stood at 1.18%, both rates rose for the seventh consecutive month.
  • Product choice overall fell for the first time since April this year and there are now 1,628 savings deals (including ISAs) on the market.
  • All average ISA rates have now moved away from record lows. The average notice ISA rate rose to 0.37%, the first rise since September 2020. Average no notice ISA and both the one-year and longer-term fixed ISAs rose month-on-month.
  • ISA product choice improved for a seventh consecutive month, to 382 deals, the highest seen since March 2020 when there 417 deals.
  • The average easy access rate rose to its highest level during 2021, to 0.19%. The average notice rate rose for the seventh month running, now 0.55%, its highest point since June 2020 when it was 0.69%.
  • The average one-year bond has reached its highest level since June 2020 when it was 0.86%, and the longer-term fixed bond rate has risen to its highest level since May 2020 when it stood at 1.18%, both rates rose for the seventh consecutive month.
  • Product choice overall fell for the first time since April this year and there are now 1,628 savings deals (including ISAs) on the market.

Savings market analysis – average rates

 

Nov-19

Nov-20

Oct-21

Nov-21

Average easy access rate

0.62%

0.22%

0.18%

0.19%

Average easy access ISA rate

0.87%

0.31%

0.25%

0.26%

Average notice rate

1.08%

0.50%

0.54%

0.55%

Average notice ISA rate

1.15%

0.54%

0.31%

0.37%

Average one-year fixed rate bond

1.28%

0.61%

0.76%

0.77%

Average longer-term fixed rate bond*

1.54%

0.87%

1.03%

1.06%

Average one-year fixed rate ISA

1.21%

0.58%

0.53%

0.56%

Average longer-term fixed rate ISA*

1.35%

0.76%

0.83%

0.92%

*Longer-term fixed bonds or ISAs are those with terms over 550 days. Average interest rates based on a £5,000 deposit as at the start of the month.

Source: Moneyfacts Treasury Reports

 

Savings market analysis – product count

 

Nov-19

Nov-20

Oct-21

Oct-21

Number of live savings account options (excluding ISAs)

1,484

1,161

1,259

1,246

Number of live ISA options

422

356

380

382

Source: Moneyfacts Treasury Reports

Savings market analysis – average rates

 

Nov-19

Nov-20

Oct-21

Nov-21

Average easy access rate

0.62%

0.22%

0.18%

0.19%

Average easy access ISA rate

0.87%

0.31%

0.25%

0.26%

Average notice rate

1.08%

0.50%

0.54%

0.55%

Average notice ISA rate

1.15%

0.54%

0.31%

0.37%

Average one-year fixed rate bond

1.28%

0.61%

0.76%

0.77%

Average longer-term fixed rate bond*

1.54%

0.87%

1.03%

1.06%

Average one-year fixed rate ISA

1.21%

0.58%

0.53%

0.56%

Average longer-term fixed rate ISA*

1.35%

0.76%

0.83%

0.92%

*Longer-term fixed bonds or ISAs are those with terms over 550 days. Average interest rates based on a £5,000 deposit as at the start of the month.

Source: Moneyfacts Treasury Reports

 

Savings market analysis – product count

 

Nov-19

Nov-20

Oct-21

Oct-21

Number of live savings account options (excluding ISAs)

1,484

1,161

1,259

1,246

Number of live ISA options

422

356

380

382

Source: Moneyfacts Treasury Reports

Rachel Springall, Finance Expert at Moneyfacts, said:

“Savers may well have been disappointed that the Bank of England did not increase interest rates this month, but regardless, the savings market has been moving in a positive direction. One area of the savings arena to make a comeback from record low rates has been Cash ISAs, as with the notice ISA rate rising month-on-month, no longer is there an average savings rate resting at a record low. There does however remain a difference between the top fixed ISA and non-ISA rates so savers will need to think carefully which is the most suitable for their needs.

“Fixed bond rates continue to rise, thanks to a healthy injection of competition among challenger banks, which means both the average one-year fixed and longer-term fixed rate bond has risen for seven consecutive months. Savers coming off a one-year fixed deal will be pleased to see the average one-year bond stands at 0.77%, up from 0.61% a year ago. While much of the rate focus has been within this arena, there has also been an uplift to longer-term fixed rates, with the average longer-term fixed rate bond of 1.06% now at its highest level since May 2020.

“The right type of savings account will continue to vary for consumers but those who are not comfortable to lock their cash away will find the average easy access and notice rates rose by 0.01% month-on-month and signs show many are still putting cash into flexible accounts. According to the Bank of England, during September there was an inflow into sight deposits of almost £7.5 billion, which is £87.5 billion so far during 2021. Some of these savers may well have their cash stored with a high street bank for security, but these savers could stand to miss out on a much better interest rate if they don’t switch as it is the challenger banks and building societies dominating the top rate tables.”

Rachel Springall, Finance Expert at Moneyfacts, said:

“Savers may well have been disappointed that the Bank of England did not increase interest rates this month, but regardless, the savings market has been moving in a positive direction. One area of the savings arena to make a comeback from record low rates has been Cash ISAs, as with the notice ISA rate rising month-on-month, no longer is there an average savings rate resting at a record low. There does however remain a difference between the top fixed ISA and non-ISA rates so savers will need to think carefully which is the most suitable for their needs.

“Fixed bond rates continue to rise, thanks to a healthy injection of competition among challenger banks, which means both the average one-year fixed and longer-term fixed rate bond has risen for seven consecutive months. Savers coming off a one-year fixed deal will be pleased to see the average one-year bond stands at 0.77%, up from 0.61% a year ago. While much of the rate focus has been within this arena, there has also been an uplift to longer-term fixed rates, with the average longer-term fixed rate bond of 1.06% now at its highest level since May 2020.

“The right type of savings account will continue to vary for consumers but those who are not comfortable to lock their cash away will find the average easy access and notice rates rose by 0.01% month-on-month and signs show many are still putting cash into flexible accounts. According to the Bank of England, during September there was an inflow into sight deposits of almost £7.5 billion, which is £87.5 billion so far during 2021. Some of these savers may well have their cash stored with a high street bank for security, but these savers could stand to miss out on a much better interest rate if they don’t switch as it is the challenger banks and building societies dominating the top rate tables.”

Notes to editors

Pioneering financial comparison technology for over 30 years.

Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, business banking, life, pension and investment products in the UK.

Moneyfacts is the UK's leading independent provider of finance product data. For over 30 years Moneyfacts' information has been a key driver behind personal finance product decisions.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room with ISDN (01603 230551) and Skype (Moneyfacts).

 

Notes to editors

Pioneering financial comparison technology for over 30 years.

Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, business banking, life, pension and investment products in the UK.

Moneyfacts is the UK's leading independent provider of finance product data. For over 30 years Moneyfacts' information has been a key driver behind personal finance product decisions.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room with ISDN (01603 230551) and Skype (Moneyfacts).

 

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Rachel Springall Press Officer / Finance Expert
Eleanor Williams Press Officer / Finance Expert