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Savings rates rise consecutively across the spectrum

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Rachel Springall, Press Officer
Rachel Springall, Press Officer / Finance Expert 01603 476210 Email Rachel
14/11/2022

Savings rates rise consecutively across the spectrum

Savings rates rise consecutively across the spectrum

Moneyfacts UK Savings Trends Treasury Report data shows that average rates across the savings spectrum rose for the ninth consecutive month for the first time since our records began in February 2007.

 

Moneyfacts UK Savings Trends Treasury Report data shows that average rates across the savings spectrum rose for the ninth consecutive month for the first time since our records began in February 2007.

 

  • The average easy access rate rose to 1.16%, breaching 1% for the first time since August 2012 and stands at its highest point in over 10 years (1.19% in February 2009). The average notice rate rose to 1.91%, now the highest rate since December 2008 (2.64%).
  • The easy access ISA rate rose month-on-month to 1.26% and stands at its highest point since November 2013 (1.28%). The average notice ISA rate rose to 1.72% and is at its highest since July 2013 (1.75%).
  • The average one-year fixed bond rose to 3.29%, breaching 3% for the first time since November 2009 (3.04%) and stands at its highest level since January 2009 (3.49%). The average longer-term fixed bond rate rose to 3.77% and is at its highest point since February 2010 (3.85%).
  • The average one-year fixed ISA now stands at 2.98%, now at its highest point since May 2012 (3.02%). The average longer-term fixed ISA rate rose to 3.44%, breaching 3% for the first time since October 2012 (3.15%) and stands at its highest point since June 2012 (3.47%).
  • Product choice overall fell for the second consecutive month to 1,735 savings deals (including ISAs).
  • The average shelf life of fixed rate bonds fell by eight days month-on-month to 26 days for November, lowest number of days since March 2009 (21 days).
  • The average easy access rate rose to 1.16%, breaching 1% for the first time since August 2012 and stands at its highest point in over 10 years (1.19% in February 2009). The average notice rate rose to 1.91%, now the highest rate since December 2008 (2.64%).
  • The easy access ISA rate rose month-on-month to 1.26% and stands at its highest point since November 2013 (1.28%). The average notice ISA rate rose to 1.72% and is at its highest since July 2013 (1.75%).
  • The average one-year fixed bond rose to 3.29%, breaching 3% for the first time since November 2009 (3.04%) and stands at its highest level since January 2009 (3.49%). The average longer-term fixed bond rate rose to 3.77% and is at its highest point since February 2010 (3.85%).
  • The average one-year fixed ISA now stands at 2.98%, now at its highest point since May 2012 (3.02%). The average longer-term fixed ISA rate rose to 3.44%, breaching 3% for the first time since October 2012 (3.15%) and stands at its highest point since June 2012 (3.47%).
  • Product choice overall fell for the second consecutive month to 1,735 savings deals (including ISAs).
  • The average shelf life of fixed rate bonds fell by eight days month-on-month to 26 days for November, lowest number of days since March 2009 (21 days).

Savings market analysis – average rates

 

Nov-20

Nov-21

Oct-22

Nov-22

Average easy access rate

0.22%

0.19%

0.99%

1.16%

Average easy access ISA rate

0.31%

0.26%

1.06%

1.26%

Average notice rate

0.50%

0.55%

1.64%

1.91%

Average notice ISA rate

0.54%

0.37%

1.49%

1.72%

Average one-year fixed rate bond

0.61%

0.77%

2.68%

3.29%

Average longer-term fixed rate bond*

0.87%

1.06%

3.12%

3.77%

Average one-year fixed rate ISA

0.58%

0.56%

2.29%

2.98%

Average longer-term fixed rate ISA*

0.76%

0.92%

2.76%

3.44%

*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

 

Nov-20

Nov-21

Oct-22

Nov-22

Number of live savings account options (excluding ISAs)

1,161

1,246

1,325

1,314

Number of live ISA options

356

382

423

421

Source: Moneyfacts Treasury Reports

Savings market analysis – average rates

 

Nov-20

Nov-21

Oct-22

Nov-22

Average easy access rate

0.22%

0.19%

0.99%

1.16%

Average easy access ISA rate

0.31%

0.26%

1.06%

1.26%

Average notice rate

0.50%

0.55%

1.64%

1.91%

Average notice ISA rate

0.54%

0.37%

1.49%

1.72%

Average one-year fixed rate bond

0.61%

0.77%

2.68%

3.29%

Average longer-term fixed rate bond*

0.87%

1.06%

3.12%

3.77%

Average one-year fixed rate ISA

0.58%

0.56%

2.29%

2.98%

Average longer-term fixed rate ISA*

0.76%

0.92%

2.76%

3.44%

*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

 

Nov-20

Nov-21

Oct-22

Nov-22

Number of live savings account options (excluding ISAs)

1,161

1,246

1,325

1,314

Number of live ISA options

356

382

423

421

Source: Moneyfacts Treasury Reports

Rachel Springall, Finance Expert at Moneyfacts, said:

“Interest rates have continued to rise across the savings spectrum, and we witnessed nine consecutive months of increases to all average rates for the first time on our records. The average easy access rate breached 1% for the first time in over 10 years and fixed rate bonds saw the average shelf life fall to 26 days, the lowest figure seen since 2009. These highlights are proof of the positive direction of the cash savings market, with further rises expected due to the Bank of England base rate rises.

“Challenger brands have continued to be a notable catalyst for fuelling the fixed bond market with further improvements month-on-month, with the average rate for one-year bonds breaching 3% for the first time since November 2009 and standing at its highest point since January 2009. The average longer-term fixed rate also rose to its highest point since February 2010, but considering consecutive rises in interest rates, whether savers are prepared to lock away their cash for longer than a year is debatable. The market may then continue to see volatility for shorter-term bonds and the shelf life of fixed bonds in the months to come.

“ISA rates have continued to increase, with fixed rates rising to levels not seen in a decade and variable rates rising to the highest levels since 2013. These are encouraging signs for savers who wish to utilise their ISA allowance, especially those with larger pots who may be edging closer to their Personal Savings Allowance (PSA) limit due to rising interest rates. However, it remains the case that the rate gap between fixed ISAs and bonds is obvious, so savers will need to weigh up any tax-free allowance they have before they commit.

“As the cost of living crisis continues, having quick access to cash could be invaluable and accounts such as an easy access account can offer that flexibility. According to the Bank of England, there was an inflow of just over £3 billion into interest-bearing sight deposits in September, showing consumers are still putting money away into flexible accounts, but there was also an inflow of £3.3 billion into time deposits – a sign of consumers taking advantage of the significant rises to fixed rates in recent months. As the savings market remains volatile, consumers and providers will need to act swiftly to keep on top of any prominent offers.”

Rachel Springall, Finance Expert at Moneyfacts, said:

“Interest rates have continued to rise across the savings spectrum, and we witnessed nine consecutive months of increases to all average rates for the first time on our records. The average easy access rate breached 1% for the first time in over 10 years and fixed rate bonds saw the average shelf life fall to 26 days, the lowest figure seen since 2009. These highlights are proof of the positive direction of the cash savings market, with further rises expected due to the Bank of England base rate rises.

“Challenger brands have continued to be a notable catalyst for fuelling the fixed bond market with further improvements month-on-month, with the average rate for one-year bonds breaching 3% for the first time since November 2009 and standing at its highest point since January 2009. The average longer-term fixed rate also rose to its highest point since February 2010, but considering consecutive rises in interest rates, whether savers are prepared to lock away their cash for longer than a year is debatable. The market may then continue to see volatility for shorter-term bonds and the shelf life of fixed bonds in the months to come.

“ISA rates have continued to increase, with fixed rates rising to levels not seen in a decade and variable rates rising to the highest levels since 2013. These are encouraging signs for savers who wish to utilise their ISA allowance, especially those with larger pots who may be edging closer to their Personal Savings Allowance (PSA) limit due to rising interest rates. However, it remains the case that the rate gap between fixed ISAs and bonds is obvious, so savers will need to weigh up any tax-free allowance they have before they commit.

“As the cost of living crisis continues, having quick access to cash could be invaluable and accounts such as an easy access account can offer that flexibility. According to the Bank of England, there was an inflow of just over £3 billion into interest-bearing sight deposits in September, showing consumers are still putting money away into flexible accounts, but there was also an inflow of £3.3 billion into time deposits – a sign of consumers taking advantage of the significant rises to fixed rates in recent months. As the savings market remains volatile, consumers and providers will need to act swiftly to keep on top of any prominent offers.”

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