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.”