Caitlyn Eastell, Personal Finance Analyst at Moneyfacts, said:

“Fixed rates are continuing to rise, with the average one-year fixed rate hitting its highest level since April 2025, while longer-term deals have climbed to highs not seen since January 2024. Fixed ISAs are following the same trajectory, as rates have climbed to two-year highs. This may be expected, particularly when base rate is likely to remain higher for longer, encouraging providers to offer more competitive returns to attract longer-term deposits. In fact, fixed ISAs continue to outperform their non-ISA counterparts, meaning savers are no longer having to compromise between competitive returns and tax-efficiency. While this is positive news for savers chasing higher returns and seeking certainty, it’s a double-edged sword as savers will need to sacrifice flexibility. Savers should consider reviewing their full savings pot and keep some cash in easy reach for emergencies before locking away. 

“After months of growth, the cash ISA market is showing signs of cooling. Average variable cash ISA rates fell for the first time since February, with the number of cash ISAs also dropping for the first time since November 2025. Providers aren’t needing to compete for deposits compared to peak ISA season. This means savers could start seeing less attractive variable ISA rates on offer. It’s crucial that savers shop around if they find they’re being met with diminishing returns.

“Outside of ISAs, record levels of product choice are creating opportunities for savers willing to shop around. With the highest number of savings accounts ever recorded, more than half are paying above base rate, and competition is still intensifying. Savers who remain loyal to older accounts risk falling behind the market’s best deals and may even see their real returns eroded by inflation. Regularly reviewing and switching accounts can make a meaningful difference to overall returns.”