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.”