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Longer-term fixed bond rate falls

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Rachel Springall, Press Officer
Rachel Springall, Press Officer / Finance Expert 01603 476210 Email Rachel
16/10/2023

Longer-term fixed bond rate falls for the first time in over six months

Longer-term fixed bond rate falls for the first time in over six months

Moneyfacts UK Savings Trends Treasury Report data shows the average longer-term fixed bond rate has fallen for the first time in over six months. Meanwhile, the average easy access rate has breached 3% for the first time in almost 15 years and the choice of Cash ISAs nears a record high.

 

Moneyfacts UK Savings Trends Treasury Report data shows the average longer-term fixed bond rate has fallen for the first time in over six months. Meanwhile, the average easy access rate has breached 3% for the first time in almost 15 years and the choice of Cash ISAs nears a record high.

 

  • All variable rates (easy access, notice and ISA equivalents) rose for the 20th consecutive month, the first time on Moneyfacts’ records (this data set began in 2007).
  • The average easy access rate rose to 3.16%, breaching 3% for the first time since November 2008, which was also its previous highest point on our records (3.63%). The average notice rate rose to 4.15% and stands at its highest point since January 2008 (4.22%).
  • The average easy access ISA rate rose month-on-month to 3.24% and stands at its highest point since December 2008 (3.74%). The average notice ISA rate rose to 4.01% and is at its highest since November 2008 (4.91%).
  • The average one-year fixed bond rose to 5.42% and stands at its highest point since November 2008 (5.79%). The average longer-term fixed bond fell to 5.11%, its first fall since March 2023.
  • The average one-year fixed ISA rose to 5.27%, its highest point since November 2008 (5.86%). The average longer-term fixed ISA rate remained unchanged at 5.02%, its highest point since November 2008 (5.23%).
  • Product choice overall rose month-on-month to 1,979 savings deals (including ISAs). ISA choice rose to 529 deals, the second highest count on record (highest count was 534 in July 2023).

 

  • All variable rates (easy access, notice and ISA equivalents) rose for the 20th consecutive month, the first time on Moneyfacts’ records (this data set began in 2007).
  • The average easy access rate rose to 3.16%, breaching 3% for the first time since November 2008, which was also its previous highest point on our records (3.63%). The average notice rate rose to 4.15% and stands at its highest point since January 2008 (4.22%).
  • The average easy access ISA rate rose month-on-month to 3.24% and stands at its highest point since December 2008 (3.74%). The average notice ISA rate rose to 4.01% and is at its highest since November 2008 (4.91%).
  • The average one-year fixed bond rose to 5.42% and stands at its highest point since November 2008 (5.79%). The average longer-term fixed bond fell to 5.11%, its first fall since March 2023.
  • The average one-year fixed ISA rose to 5.27%, its highest point since November 2008 (5.86%). The average longer-term fixed ISA rate remained unchanged at 5.02%, its highest point since November 2008 (5.23%).
  • Product choice overall rose month-on-month to 1,979 savings deals (including ISAs). ISA choice rose to 529 deals, the second highest count on record (highest count was 534 in July 2023).

 

Savings market analysis – average rates

 

Oct-21

Oct-22

Sep-23

Oct-23

Average easy access rate

0.18%

0.99%

2.95%

3.16%

Average easy access ISA rate

0.25%

1.06%

3.04%

3.24%

Average notice rate

0.54%

1.64%

4.04%

4.15%

Average notice ISA rate

0.31%

1.49%

3.89%

4.01%

Average one-year fixed rate bond

0.76%

2.68%

5.34%

5.42%

Average longer-term fixed rate bond*

1.03%

3.12%

5.12%

5.11%

Average one-year fixed rate ISA

0.53%

2.29%

5.19%

5.27%

Average longer-term fixed rate ISA*

0.83%

2.76%

5.02%

5.02%

*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

 

Oct-21

Oct-22

Sep-23

Oct-23

Number of live savings account options (excluding ISAs)

1,259

1,325

1,421

1,450

Number of live ISA options

380

423

516

529

Source: Moneyfacts Treasury Reports

 

 

Savings market analysis – average rates

 

Oct-21

Oct-22

Sep-23

Oct-23

Average easy access rate

0.18%

0.99%

2.95%

3.16%

Average easy access ISA rate

0.25%

1.06%

3.04%

3.24%

Average notice rate

0.54%

1.64%

4.04%

4.15%

Average notice ISA rate

0.31%

1.49%

3.89%

4.01%

Average one-year fixed rate bond

0.76%

2.68%

5.34%

5.42%

Average longer-term fixed rate bond*

1.03%

3.12%

5.12%

5.11%

Average one-year fixed rate ISA

0.53%

2.29%

5.19%

5.27%

Average longer-term fixed rate ISA*

0.83%

2.76%

5.02%

5.02%

*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

 

Oct-21

Oct-22

Sep-23

Oct-23

Number of live savings account options (excluding ISAs)

1,259

1,325

1,421

1,450

Number of live ISA options

380

423

516

529

Source: Moneyfacts Treasury Reports

 

 

Rachel Springall, Finance Expert at Moneyfacts, said:

“One area of the market not blessed by rate rises this month is longer-term fixed bonds, with the average rate falling for the first time since March 2023, while the average longer-term fixed ISA rate stood still. This signals a turnaround for the longer-term fixed rate market, perhaps not too unexpected with base rate remaining on hold and the markets expecting rates to drop in the months ahead. Those savers considering a fixed bond or ISA may wish to act quickly to take advantage of the highest rates.

“Those savers who frequently utilise their ISA allowance each year may be encouraged by the latest uplift in choice across the Cash ISA market. The number of Cash ISAs available stands at 529, the second highest on record, and average rates across variable and fixed ISAs are at their highest levels in almost 15 years. Those looking to move older ISA subscriptions must remember to transfer their funds and not encash them to keep their ISA wrapper. Savers would also be wise to look for ISAs that apply flexible ISA rules if they need to dip into their pot and top up their ISA during the same tax year. Those who make use of their Personal Savings Allowance (PSA) must not forget about their yearly ISA allowance and consider them for their long-term tax-free benefits, particularly as interest rates have been on the rise.

“Savers will find average interest rates across easy access accounts breached 3% for the first time in almost 15 years, great news for those who prefer to keep their cash accessible. However, as the Bank of England base rate stands at 5.25%, not every account has seen the benefits of every rate rise, so it is imperative that savers take time to compare and switch deals. The same sentiment applies to easy access ISAs, as rates have continued to move in an upwards trajectory. If savers are comfortable to give notice to access their funds, they will find both notice accounts and notice ISAs pay over 4% on average. It’s always worth exploring the different savings options available and choosing a deal that suits specific needs.”

Rachel Springall, Finance Expert at Moneyfacts, said:

“One area of the market not blessed by rate rises this month is longer-term fixed bonds, with the average rate falling for the first time since March 2023, while the average longer-term fixed ISA rate stood still. This signals a turnaround for the longer-term fixed rate market, perhaps not too unexpected with base rate remaining on hold and the markets expecting rates to drop in the months ahead. Those savers considering a fixed bond or ISA may wish to act quickly to take advantage of the highest rates.

“Those savers who frequently utilise their ISA allowance each year may be encouraged by the latest uplift in choice across the Cash ISA market. The number of Cash ISAs available stands at 529, the second highest on record, and average rates across variable and fixed ISAs are at their highest levels in almost 15 years. Those looking to move older ISA subscriptions must remember to transfer their funds and not encash them to keep their ISA wrapper. Savers would also be wise to look for ISAs that apply flexible ISA rules if they need to dip into their pot and top up their ISA during the same tax year. Those who make use of their Personal Savings Allowance (PSA) must not forget about their yearly ISA allowance and consider them for their long-term tax-free benefits, particularly as interest rates have been on the rise.

“Savers will find average interest rates across easy access accounts breached 3% for the first time in almost 15 years, great news for those who prefer to keep their cash accessible. However, as the Bank of England base rate stands at 5.25%, not every account has seen the benefits of every rate rise, so it is imperative that savers take time to compare and switch deals. The same sentiment applies to easy access ISAs, as rates have continued to move in an upwards trajectory. If savers are comfortable to give notice to access their funds, they will find both notice accounts and notice ISAs pay over 4% on average. It’s always worth exploring the different savings options available and choosing a deal that suits specific needs.”

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.
Rachel Springall Press Officer / Finance Expert
Caitlyn Eastell Apprentice Press & PR Assistant