Caitlyn Eastell, Personal Finance Analyst at Moneyfacts, said:

“Savers will be pleased to see savings rates are rising across the board, marking the first time since September 2023 that all average ISA and non-ISA rates have increased in the same month. These meaningful shifts could prompt savers to review where their cash is held. Encouragingly, while some average fixed rates have exceeded 4% in recent months, this is the first time since April 2025 that all fixed rates, including ISAs, have risen above this level at the same time. ISA savers continue to gain an edge, as both one-year and longer-term ISA rates outperform their non-ISA counterparts, meaning savers may no longer need to compromise between competitive returns and tax efficiency. The margin between one-year and longer-term fixed rates has slimmed to just 0.03% and may give savers extra incentive to lock in for longer. Fixed rate products are also staying on the market for longer, with the average shelf-life rising to 43 days, suggesting that providers are more comfortable holding attractive deals despite shifting interest rate expectations.

“The savings market has continued to thrive, with product choice once again reaching record highs. Growing product choice is always welcome news, and for the first time since November 2022 more than half of all savings accounts now pay above the Bank of England Base Rate. Savers should take advantage of the intensifying competition, and the continued rise in rates presents a valuable opportunity to maximise returns, particularly for those still holding cash in low-paying accounts.”