Brand Logo Moneyfacts Group plc
Telephone Icon T: 01603 476476 Email Icon E: enquiries@moneyfacts.co.uk LinkedIn Icon

One-year fixed bond rate halts cycle of monthly cuts

Image of a Moneyfacts Savings Treasury Report Image of a Moneyfacts Savings Treasury Report Image of a Moneyfacts Savings Treasury Report
Rachel Springall, Press Officer
Rachel Springall, Press Officer / Finance Expert T: 01603 476210 E: Email Rachel
17/06/2024

One-year fixed bond rate halts cycle of monthly cuts

One-year fixed bond rate halts cycle of monthly cuts

Moneyfacts UK Savings Trends Treasury Report data shows the average one-year fixed bond rate rose, halting seven consecutive months of cuts. Cash ISA rates fell across the spectrum month-on-month.

 

Moneyfacts UK Savings Trends Treasury Report data shows the average one-year fixed bond rate rose, halting seven consecutive months of cuts. Cash ISA rates fell across the spectrum month-on-month.

 

  • The average easy access rate rose month-on-month at 3.12%, the first rise since March 2024. The average notice rate fell to 4.27%, the first fall since March 2024.
  • The average easy access ISA rate fell month-on-month to 3.31%. The average notice ISA rate fell to 4.14%, the first fall since March 2024.
  • The average one-year fixed bond rate rose to 4.59%, breaking seven months of back-to-back cuts, rising for the first time since October 2023. The average longer-term fixed bond rose to 4.13%, the first rise since March 2024. 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 4.40%, now standing at its lowest point since June 2023 (3.96%). The average longer-term fixed ISA rate fell to 4.04%, also at its lowest point since June 2023 (4.01%).
  • Product choice overall rose month-on-month to 1,973 savings deals (including ISAs), the highest count since October 2023 (1,979). The choice of Cash ISAs rose to 553 deals, the highest count on Moneyfacts’ electronic records (starting February 2007).

 

  • The average easy access rate rose month-on-month at 3.12%, the first rise since March 2024. The average notice rate fell to 4.27%, the first fall since March 2024.
  • The average easy access ISA rate fell month-on-month to 3.31%. The average notice ISA rate fell to 4.14%, the first fall since March 2024.
  • The average one-year fixed bond rate rose to 4.59%, breaking seven months of back-to-back cuts, rising for the first time since October 2023. The average longer-term fixed bond rose to 4.13%, the first rise since March 2024. 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 4.40%, now standing at its lowest point since June 2023 (3.96%). The average longer-term fixed ISA rate fell to 4.04%, also at its lowest point since June 2023 (4.01%).
  • Product choice overall rose month-on-month to 1,973 savings deals (including ISAs), the highest count since October 2023 (1,979). The choice of Cash ISAs rose to 553 deals, the highest count on Moneyfacts’ electronic records (starting February 2007).

 

Savings market analysis – average rates

 

Jun-22 Jun-23 May-24 Jun-24

Average easy access rate

0.46%

2.20%

3.11%

3.12%

Average easy access ISA rate

0.52%

2.35%

3.34%

3.31%

Average notice rate

0.94%

3.12%

4.28%

4.27%

Average notice ISA rate

0.77%

3.07%

4.17%

4.14%

Average one-year fixed rate bond

1.53%

4.21%

4.58%

4.59%

Average longer-term fixed rate bond*

1.97%

4.22%

4.12%

4.13%

Average one-year fixed rate ISA

1.21%

3.96%

4.42%

4.40%

Average longer-term fixed rate ISA*

1.67%

4.01%

4.06%

4.04%

*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

 

Jun-22

Jun-23

May-24

Jun-24

Number of live savings account options (excluding ISAs)

1,297

1,443

1,388

1,420

Number of live ISA options

414

511

547

553

Source: Moneyfacts Treasury Reports

 

Savings market analysis – average rates

 

Jun-22 Jun-23 May-24 Jun-24

Average easy access rate

0.46%

2.20%

3.11%

3.12%

Average easy access ISA rate

0.52%

2.35%

3.34%

3.31%

Average notice rate

0.94%

3.12%

4.28%

4.27%

Average notice ISA rate

0.77%

3.07%

4.17%

4.14%

Average one-year fixed rate bond

1.53%

4.21%

4.58%

4.59%

Average longer-term fixed rate bond*

1.97%

4.22%

4.12%

4.13%

Average one-year fixed rate ISA

1.21%

3.96%

4.42%

4.40%

Average longer-term fixed rate ISA*

1.67%

4.01%

4.06%

4.04%

*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

 

Jun-22

Jun-23

May-24

Jun-24

Number of live savings account options (excluding ISAs)

1,297

1,443

1,388

1,420

Number of live ISA options

414

511

547

553

Source: Moneyfacts Treasury Reports

 

Rachel Springall, Finance Expert at Moneyfacts, said:

“Savers looking to invest in a fixed rate bond to guarantee the return on their cash may be delighted to see the average return on a one-year fixed rate bond rose month-on-month, halting seven consecutive months of rate cuts. Challenger banks were notably active in this sector throughout May, repricing existing deals and launching new bonds to entice deposits. The average shelf-life of a fixed bond rose to 48 days, its highest point since February 2023. Fixed rates have been rising due to volatile swap rates and lesser expectations of an imminent cut to the Bank of England base rate. However, it is widely anticipated that interest rates will come down in the future, so savers will need to decide whether now is the time to lock into a longer-term fixed bond instead. Month-on-month, the average longer-term fixed bond rose, but it pays 0.46% less than the average one-year bond.

“Those savers who have not yet utilised this year’s ISA allowance may be disappointed to see rates have fallen across the Cash ISA spectrum month-on-month. The average one-year and longer-term fixed ISA rates have fallen to their lowest points in 12 months, standing at 4.40% and 4.04% respectively, compared to June 2023 when they were 3.96% and 4.01%. Those savers who prefer to have an easy access ISA, due to their flexibility, will find the average rate has dropped to its lowest point since the start of February 2024 (3.30%), which was before the ISA season got into full swing. However, the overall choice of Cash ISAs continued to rise, standing at 553 options this month, the highest count on our records.

“Savers who have a simple easy access account may want to check to see if they are getting a decent return on their pot, as rates have improved due to provider competition. The average easy access rate rose to 3.12%, the first rise since March 2024. The average rate is above 3% but the best deals pay much more, so it is clear there are many easy access accounts out there paying a poor return. Those savers unfamiliar with the brands that sit in the top rate tables should keep in mind that, when protected by the Financial Services Compensation Scheme (FSCS), they would have the same level of protection as a well-known high street bank. Savers would be wise to review and switch their accounts regularly if they want to chase down the best rates.”

Rachel Springall, Finance Expert at Moneyfacts, said:

“Savers looking to invest in a fixed rate bond to guarantee the return on their cash may be delighted to see the average return on a one-year fixed rate bond rose month-on-month, halting seven consecutive months of rate cuts. Challenger banks were notably active in this sector throughout May, repricing existing deals and launching new bonds to entice deposits. The average shelf-life of a fixed bond rose to 48 days, its highest point since February 2023. Fixed rates have been rising due to volatile swap rates and lesser expectations of an imminent cut to the Bank of England base rate. However, it is widely anticipated that interest rates will come down in the future, so savers will need to decide whether now is the time to lock into a longer-term fixed bond instead. Month-on-month, the average longer-term fixed bond rose, but it pays 0.46% less than the average one-year bond.

“Those savers who have not yet utilised this year’s ISA allowance may be disappointed to see rates have fallen across the Cash ISA spectrum month-on-month. The average one-year and longer-term fixed ISA rates have fallen to their lowest points in 12 months, standing at 4.40% and 4.04% respectively, compared to June 2023 when they were 3.96% and 4.01%. Those savers who prefer to have an easy access ISA, due to their flexibility, will find the average rate has dropped to its lowest point since the start of February 2024 (3.30%), which was before the ISA season got into full swing. However, the overall choice of Cash ISAs continued to rise, standing at 553 options this month, the highest count on our records.

“Savers who have a simple easy access account may want to check to see if they are getting a decent return on their pot, as rates have improved due to provider competition. The average easy access rate rose to 3.12%, the first rise since March 2024. The average rate is above 3% but the best deals pay much more, so it is clear there are many easy access accounts out there paying a poor return. Those savers unfamiliar with the brands that sit in the top rate tables should keep in mind that, when protected by the Financial Services Compensation Scheme (FSCS), they would have the same level of protection as a well-known high street bank. Savers would be wise to review and switch their accounts regularly if they want to chase down the best rates.”

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