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Fixed bond and ISA rates fall across the spectrum

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James Hyde, Press & PR Manager
James Hyde, Press & PR Manager T: 01603 476205 E: Email James
20/05/2024

Fixed bond and ISA rates fall across the spectrum

Fixed bond and ISA rates fall across the spectrum

Moneyfacts UK Savings Trends Treasury Report data shows average fixed rate bond and ISA rates fell across the spectrum month-on-month. Over the past six months the average longer-term fixed rate bond has dropped by 0.90%.

 

Moneyfacts UK Savings Trends Treasury Report data shows average fixed rate bond and ISA rates fell across the spectrum month-on-month. Over the past six months the average longer-term fixed rate bond has dropped by 0.90%.

 

  • The average easy access rate remained unchanged month-on-month at 3.11%, unchanged for the first time since December 2021. The average notice rate rose to 4.28%, the first rise since December 2023.
  • The average easy access ISA rate fell month-on-month to 3.34%, the first fall since January 2024. The average notice ISA rate rose to 4.17%.
  • The average one-year fixed bond fell for a seventh consecutive month to 4.58%, standing at its lowest point since June 2023 (4.21%). The average longer-term fixed bond fell to 4.12%. The difference in rate between the average one-year and longer-term fixed bond stands at 0.46%, with the one-year bond paying a higher average return.
  • The average one-year fixed ISA rate fell to 4.42%. The average longer-term fixed ISA rate fell to 4.06%, standing at its lowest point since June 2023 (4.01%).
  • Product choice overall rose month-on-month to 1,935 savings deals (including ISAs), the highest count since November 2023 (1,968). The choice of Cash ISAs rose to 547 deals, the highest count on Moneyfacts’ electronic records (starting February 2007). The number of savings providers fell to 139, down from 142 last month.

 

  • The average easy access rate remained unchanged month-on-month at 3.11%, unchanged for the first time since December 2021. The average notice rate rose to 4.28%, the first rise since December 2023.
  • The average easy access ISA rate fell month-on-month to 3.34%, the first fall since January 2024. The average notice ISA rate rose to 4.17%.
  • The average one-year fixed bond fell for a seventh consecutive month to 4.58%, standing at its lowest point since June 2023 (4.21%). The average longer-term fixed bond fell to 4.12%. The difference in rate between the average one-year and longer-term fixed bond stands at 0.46%, with the one-year bond paying a higher average return.
  • The average one-year fixed ISA rate fell to 4.42%. The average longer-term fixed ISA rate fell to 4.06%, standing at its lowest point since June 2023 (4.01%).
  • Product choice overall rose month-on-month to 1,935 savings deals (including ISAs), the highest count since November 2023 (1,968). The choice of Cash ISAs rose to 547 deals, the highest count on Moneyfacts’ electronic records (starting February 2007). The number of savings providers fell to 139, down from 142 last month.

 

Savings market analysis – average rates

 

May-22 May-23 Apr-24 May-24

Average easy access rate

0.39%

2.06%

3.11%

3.11%

Average easy access ISA rate

0.45%

2.26%

3.38%

3.34%

Average notice rate

0.80%

2.89%

4.27%

4.28%

Average notice ISA rate

0.64%

2.92%

4.15%

4.17%

Average one-year fixed rate bond

1.24%

3.93%

4.60%

4.58%

Average longer-term fixed rate bond*

1.68%

4.01%

4.13%

4.12%

Average one-year fixed rate ISA

1.02%

3.80%

4.51%

4.42%

Average longer-term fixed rate ISA*

1.49%

3.89%

4.07%

4.06%

*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

 

May-22

May-23

Apr-24

May-24

Number of live savings account options (excluding ISAs)

1,269

1,378

1,406

1,388

Number of live ISA options

416

493

520

547

Source: Moneyfacts Treasury Reports

 

Savings market analysis – average rates

 

May-22 May-23 Apr-24 May-24

Average easy access rate

0.39%

2.06%

3.11%

3.11%

Average easy access ISA rate

0.45%

2.26%

3.38%

3.34%

Average notice rate

0.80%

2.89%

4.27%

4.28%

Average notice ISA rate

0.64%

2.92%

4.15%

4.17%

Average one-year fixed rate bond

1.24%

3.93%

4.60%

4.58%

Average longer-term fixed rate bond*

1.68%

4.01%

4.13%

4.12%

Average one-year fixed rate ISA

1.02%

3.80%

4.51%

4.42%

Average longer-term fixed rate ISA*

1.49%

3.89%

4.07%

4.06%

*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

 

May-22

May-23

Apr-24

May-24

Number of live savings account options (excluding ISAs)

1,269

1,378

1,406

1,388

Number of live ISA options

416

493

520

547

Source: Moneyfacts Treasury Reports

 

Rachel Springall, Finance Expert at Moneyfacts, said:

“Savers will find a combination of both rises and falls to rates month-on-month, but fixed bond and ISA rates reduced across the spectrum. The longer-term bond average rate has now dropped by 0.90% in the past six months alone, with the one-year equivalent falling by 0.78% over the same period. It is worth noting that the extent of the latest month-on-month cuts were more subdued than seen over the past six months. Indeed, between the start of January and February 2024, the average longer-term bond rate fell by a staggering 0.34%, the biggest monthly cut seen in 15 years. The volatility surrounding the shelf-life of a fixed rate bond has calmed, rising to 37 days. Year-on-year, fixed bonds are paying much higher rates and could still appeal to savers hoping to get a guaranteed return on their cash. Indeed, the average one-year fixed bond paid less than 4% in May 2023, and the average longer-term fixed bond paid slightly over 4%. Those coming off a fixed rate bond would do well to consider the challenger banks which offer some of the best fixed bond rates, enticing deposits to fund their future lending.

“Savers looking for a flexible pot for their cash will find the average return on an easy access account held firm at 3.11%, which is positive, as last month it experienced its biggest monthly drop since June 2020. The last time the rate did not rise, or fall month-on-month, was at the start of December 2021. However, savers will still need to proactively check their accounts regularly and switch if they are getting a poor return. Variable rates on easy access and notice accounts have been generally resilient in recent months, and year-on-year, are paying over 1% more across the board, which includes easy access and notice Cash ISAs.

“The choice of Cash ISAs rose to 547, a record high since our electronic records began. The number of providers to offer a Cash ISA also rose up from 91 at the start of April to 95 the beginning of May. This was the biggest month-on-month rise in providers in three years and marks the highest number of Cash ISA providers in more than 15 years. As providers enter the market and improve the availability of products in the aftermath of a busy ISA season, it will be interesting to see whether product choice continues to flourish in the coming months.”

Rachel Springall, Finance Expert at Moneyfacts, said:

“Savers will find a combination of both rises and falls to rates month-on-month, but fixed bond and ISA rates reduced across the spectrum. The longer-term bond average rate has now dropped by 0.90% in the past six months alone, with the one-year equivalent falling by 0.78% over the same period. It is worth noting that the extent of the latest month-on-month cuts were more subdued than seen over the past six months. Indeed, between the start of January and February 2024, the average longer-term bond rate fell by a staggering 0.34%, the biggest monthly cut seen in 15 years. The volatility surrounding the shelf-life of a fixed rate bond has calmed, rising to 37 days. Year-on-year, fixed bonds are paying much higher rates and could still appeal to savers hoping to get a guaranteed return on their cash. Indeed, the average one-year fixed bond paid less than 4% in May 2023, and the average longer-term fixed bond paid slightly over 4%. Those coming off a fixed rate bond would do well to consider the challenger banks which offer some of the best fixed bond rates, enticing deposits to fund their future lending.

“Savers looking for a flexible pot for their cash will find the average return on an easy access account held firm at 3.11%, which is positive, as last month it experienced its biggest monthly drop since June 2020. The last time the rate did not rise, or fall month-on-month, was at the start of December 2021. However, savers will still need to proactively check their accounts regularly and switch if they are getting a poor return. Variable rates on easy access and notice accounts have been generally resilient in recent months, and year-on-year, are paying over 1% more across the board, which includes easy access and notice Cash ISAs.

“The choice of Cash ISAs rose to 547, a record high since our electronic records began. The number of providers to offer a Cash ISA also rose up from 91 at the start of April to 95 the beginning of May. This was the biggest month-on-month rise in providers in three years and marks the highest number of Cash ISA providers in more than 15 years. As providers enter the market and improve the availability of products in the aftermath of a busy ISA season, it will be interesting to see whether product choice continues to flourish in the coming months.”

Notes to editors

Pioneering financial comparison technology for over 35 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 35 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.

 

Notes to editors

Pioneering financial comparison technology for over 35 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 35 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.

 

Contact Us If you're looking for extra comment, a chart or more information, then please give us a call. We are always more than happy to help.
James Hyde Press & PR Manager
Rachel Springall Press Officer / Finance Expert
Caitlyn Eastell Apprentice Press & PR Assistant