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Savings rates climb as easy access ISA breaches 2%

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Rachel Springall, Press Officer
Rachel Springall, Press Officer / Finance Expert 01603 476210 Email Rachel
29/03/2023

Savings rates climb as easy access ISA breaches 2%

Savings rates climb as easy access ISA breaches 2%

The latest Moneyfacts UK Savings Trends Treasury Report data shows all variable rates (easy access, notice and ISA equivalents) rose for the 13th consecutive month for the first time since our records began in February 2007. Cash ISA rates improved month-on-month, including the average easy access ISA rate, now at its highest point since February 2009.

 

The latest Moneyfacts UK Savings Trends Treasury Report data shows all variable rates (easy access, notice and ISA equivalents) rose for the 13th consecutive month for the first time since our records began in February 2007. Cash ISA rates improved month-on-month, including the average easy access ISA rate, now at its highest point since February 2009.

 

  • All variable rates (easy access, notice and ISA equivalents) rose for the 13th consecutive month, the first time on Moneyfacts records (this data set began in 2007).
  • Both the average easy access and notice rates hit their highest levels in more than 14 years. The average easy access rate rose to 1.85% and stands at its highest point since December 2008 (2.58%). The average notice rate rose to 2.61%, now the highest rate since December 2008 (2.64%).
  • The average easy access ISA rate rose month-on-month to 2.01% and stands at its highest point since February 2009 (2.02%). The average notice ISA rate rose to 2.64% and is at its highest since January 2009 (2.96%).
  • The average one-year fixed bond rose to 3.65% and stands at its highest point since December 2008 (4.43%). The average longer-term fixed bond fell to 3.86%.
  • The average one-year fixed ISA rose to 3.56%, its highest point since December 2008 (4.58%). The average longer-term fixed ISA rate rose to 3.72% and stands at its highest point since May 2011 (3.78%).
  • Product choice overall rose to 1,743 savings deals (including ISAs).
  • All variable rates (easy access, notice and ISA equivalents) rose for the 13th consecutive month, the first time on Moneyfacts records (this data set began in 2007).
  • Both the average easy access and notice rates hit their highest levels in more than 14 years. The average easy access rate rose to 1.85% and stands at its highest point since December 2008 (2.58%). The average notice rate rose to 2.61%, now the highest rate since December 2008 (2.64%).
  • The average easy access ISA rate rose month-on-month to 2.01% and stands at its highest point since February 2009 (2.02%). The average notice ISA rate rose to 2.64% and is at its highest since January 2009 (2.96%).
  • The average one-year fixed bond rose to 3.65% and stands at its highest point since December 2008 (4.43%). The average longer-term fixed bond fell to 3.86%.
  • The average one-year fixed ISA rose to 3.56%, its highest point since December 2008 (4.58%). The average longer-term fixed ISA rate rose to 3.72% and stands at its highest point since May 2011 (3.78%).
  • Product choice overall rose to 1,743 savings deals (including ISAs).

Savings market analysis – average rates

 

Mar-21

Mar-22

Feb-23

Mar-23

Average easy access rate

0.16%

0.25%

1.74%

1.85%

Average easy access ISA rate

0.23%

0.30%

1.85%

2.01%

Average notice rate

0.37%

0.56%

2.49%

2.61%

Average notice ISA rate

0.34%

0.38%

2.57%

2.64%

Average one-year fixed rate bond

0.43%

0.89%

3.58%

3.65%

Average longer-term fixed rate bond*

0.65%

1.31%

3.87%

3.86%

Average one-year fixed rate ISA

0.38%

0.72%

3.41%

3.56%

Average longer-term fixed rate ISA*

0.59%

1.12%

3.68%

3.72%

*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

 

Mar-21

Mar-22

Feb-23

Mar-23

Number of live savings account options (excluding ISAs)

1,054

1,255

1,288

1,310

Number of live ISA options

331

399

439

433

Source: Moneyfacts Treasury Reports

Savings market analysis – average rates

 

Mar-21

Mar-22

Feb-23

Mar-23

Average easy access rate

0.16%

0.25%

1.74%

1.85%

Average easy access ISA rate

0.23%

0.30%

1.85%

2.01%

Average notice rate

0.37%

0.56%

2.49%

2.61%

Average notice ISA rate

0.34%

0.38%

2.57%

2.64%

Average one-year fixed rate bond

0.43%

0.89%

3.58%

3.65%

Average longer-term fixed rate bond*

0.65%

1.31%

3.87%

3.86%

Average one-year fixed rate ISA

0.38%

0.72%

3.41%

3.56%

Average longer-term fixed rate ISA*

0.59%

1.12%

3.68%

3.72%

*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

 

Mar-21

Mar-22

Feb-23

Mar-23

Number of live savings account options (excluding ISAs)

1,054

1,255

1,288

1,310

Number of live ISA options

331

399

439

433

Source: Moneyfacts Treasury Reports

Rachel Springall, Finance Expert at Moneyfacts, said:

“As a new tax year looms it is encouraging to see interest rates have improved across Cash ISAs for those savers who still need to utilise their ISA allowance. The savings market overall is going through a buoyant period thanks to a mix of rate competition, base rate rises and the rush of launching enticing offers for savers looking for a deal before the 2023/2024 tax year begins. The average easy access ISA rate rose month-on-month to 2.01% and stands at its highest point since February 2009 (2.02%). Those savers comparing short-term fixed ISAs will also find the average one-year fixed ISA rose to 3.56%, its highest point since December 2008 (4.58%).

“Savers looking beyond ISAs may be pleased to know that all variable rates (easy access, notice and ISA equivalents) rose for the 13th consecutive month, thanks to competition and back-to-back Bank of England base rate rises. It is imperative that consumers take time to check any variable rates they have against the top rates, especially as the average easy access rate is 1.60% higher than a year ago. There will be accounts out there which have not received the full benefits of base rate rises and it is down to savers to compare and switch. Growing choice in the market means it is more important than ever for savers to consider both unfamiliar and household names, as there are now more overall savings deals on the market since October 2022.

“The trend in demand for fixed rates is still evident, as seen over recent months, as is the need for some savers to dip into more flexible pots, according to recent figures published by the Bank of England. There was an outflow of almost £4 billion from interest-bearing sight deposits in January 2023 and demand for fixed accounts recorded an inflow of almost £7 billion into time deposits. Our own data shows the average shelf life of fixed rate bonds stands at 46 days, much longer than seen at the start of the year. Savers will still need to act quickly to take advantage of a top rate, particularly if offered by a challenger bank that reaches its funding targets, as a deal may only be on the shelf for a short period.”

Rachel Springall, Finance Expert at Moneyfacts, said:

“As a new tax year looms it is encouraging to see interest rates have improved across Cash ISAs for those savers who still need to utilise their ISA allowance. The savings market overall is going through a buoyant period thanks to a mix of rate competition, base rate rises and the rush of launching enticing offers for savers looking for a deal before the 2023/2024 tax year begins. The average easy access ISA rate rose month-on-month to 2.01% and stands at its highest point since February 2009 (2.02%). Those savers comparing short-term fixed ISAs will also find the average one-year fixed ISA rose to 3.56%, its highest point since December 2008 (4.58%).

“Savers looking beyond ISAs may be pleased to know that all variable rates (easy access, notice and ISA equivalents) rose for the 13th consecutive month, thanks to competition and back-to-back Bank of England base rate rises. It is imperative that consumers take time to check any variable rates they have against the top rates, especially as the average easy access rate is 1.60% higher than a year ago. There will be accounts out there which have not received the full benefits of base rate rises and it is down to savers to compare and switch. Growing choice in the market means it is more important than ever for savers to consider both unfamiliar and household names, as there are now more overall savings deals on the market since October 2022.

“The trend in demand for fixed rates is still evident, as seen over recent months, as is the need for some savers to dip into more flexible pots, according to recent figures published by the Bank of England. There was an outflow of almost £4 billion from interest-bearing sight deposits in January 2023 and demand for fixed accounts recorded an inflow of almost £7 billion into time deposits. Our own data shows the average shelf life of fixed rate bonds stands at 46 days, much longer than seen at the start of the year. Savers will still need to act quickly to take advantage of a top rate, particularly if offered by a challenger bank that reaches its funding targets, as a deal may only be on the shelf for a short period.”

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.

 

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