ISA deals boom while savings rates climb above base

New research from Moneyfacts has shown that overall product choice rose to 2,486 savings deals (including ISAs) – the highest on its records. Excluding ISAs, product count rose to 1,774, the highest number of non-ISA products on record. The choice of cash ISAs rose saw its largest monthly rise since May 2024 to stand at 712, the highest on our records. Other key points below. Any thoughts, ASAP please.

• The number of savings providers (excluding cash ISAs) rose to 157, the highest number of non-ISA providers on record. As a result of withdrawals, the number of ISA providers has fallen by two to 100.
• The average easy access rate rose for the first time since December to 2.44%. The average notice rate fell to 3.26%, its lowest since June 2023 (3.12%).
• The average easy access ISA rate rose by its biggest margin since October 2023 to 2.73%. The average notice ISA rate rose to 3.31%, outperforming its non-ISA counterpart for the first time since May 2023.
• The average one-year fixed rate rose to 3.89%, its largest rise since September 2023. The longer-term average fixed rate rose to 3.94%, its highest rate since May 2023 (3.95%).
• The average one-year fixed ISA rate rose to 4.01%, its highest level since May 2025 (4.02%) and the longer-term fixed ISA rate rose to 3.98%, its highest in one year.
• The average shelf-life of fixed rate accounts fell to 35 days, its lowest since January 2025.
• The Moneyfacts Average Savings Rate has risen from 3.32% to 3.40% for April, this is the largest monthly increase since September 2023. Over the past year the rate has fallen from 3.65% to 3.40%.

 Caitlyn Eastell, Personal Finance Analyst at Moneyfacts, said:

“This year the competition around ISA season was particularly strong, fuelled by the fact that for savers under 65 it’s the final year for them to utilise their full £20,000 allowance. Providers have been enticing new deposits with attractive deals, as a result the total cash ISA product number has seen its largest monthly rise since May 2024 and stands at a record-breaking 712 deals. Savers should be taking advantage of this all-time high, and it may be especially timely as the new tax-year is the perfect window to review their current deal and switch to ensure they can maximise their returns before thresholds tighten. For the first time in almost three years, notice ISAs are outperforming their non-ISA counterparts, paying 3.31% and 3.26% respectively on average. While to some savers these may be a more niche option, they can provide a helpful middle ground for those seeking higher tax-free returns without the sacrifice of the total lock-in of a fixed bond.

“The number of savings deals paying above the Bank of England base rate has surged to its highest level since December 2021. While this could largely be driven by base rate remaining unchanged at 3.75% for several months, providers have also been proactively adjusting rates in response to shifting interest rate expectations. Markets have pivoted from the rate cut mindset seen earlier this year to a ‘higher for longer’ stance, or even potential rises, as the ongoing tensions in the Middle East threaten a fresh inflationary shock. Fixed rates reflect this change, with the average one-year ISA rising to over 4%, reaching its highest point since May 2025, while its non-ISA counterpart saw its biggest increase since September 2023. Savers may enjoy more competitive returns in this environment; however, it can be a tricky balancing act because sharp spikes to household bills and inflation could quickly catch up, meaning savers may be left out of pocket.”