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Savers gain £138 boost as fixed ISAs move ahead

ended 12. August 2026

Moneyfacts UK Savings Trends Treasury Report data shows savers could receive their strongest fixed return in years, while higher-rate taxpayers are encouraged to consider switching to ISAs.

Overall product choice continues to beat all-time highs, rising to 2,617 savings deals (including ISAs). Excluding ISAs, product count rose to 1,871, the highest number of non-ISA products on record (records began Feb 2007). The number of cash ISAs rose to 746.

The number of accounts paying above Base Rate at £5K rose to stand at 1,412, its highest since July 2012 (1,428).

As a result of one provider entering the savings market, the number of providers rose to 159. The number of ISA providers remained unchanged at a record high of 106.

The average easy access rate remained unchanged at 2.53%. The average notice rate also remained unchanged at 3.40%.

The average easy access ISA rate remained unchanged at 2.72%, while the average notice ISA fell to 3.31%. 

The average one-year fixed rate rose to 4.23%, its highest since November 2024 (4.24%). The longer-term average fixed rate jumped to 4.25%, its highest figure in over two years (January 2024 4.46%).

The average one-year fixed ISA rate rose to 4.24%. The longer-term fixed ISA rate rose to 4.27%, its highest since January 2024 (4.32%).

For a saver with £20,000, the average one-year ISA rate would give around £848 in interest over a year, compared with £846 in a non-ISA account. While the £2 difference may seem small, for a higher-rate taxpayer with a £500 Personal Savings Allowance, the ISA could leave them around £138 better off, with the full £848 interest kept compared with around £708 from the non-ISA after tax.

  • What is your reaction to the figures?
  • What advice would you give to people when saving?
  • How important is it to shop around for the best deal?

Responses asap.

5 responses from the Newspage community

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Editor
David Stirling
Independent Financial Adviser at Mint Wealth
The savings market is quietly delivering something it has not managed for years: genuine choice and genuinely competitive returns. Over 2,600 deals, fixed rates at their highest since late 2024, and more providers entering the market. For savers who have spent the better part of a decade being told that 0.1% was somehow a decent savings rate, this is a different world.

However, the ISA question matters more than the headline numbers suggest. The difference between an ISA and a non-ISA fixed rate looks negligible until you apply 40% tax to it. A higher-rate taxpayer keeping the full £848 interest rather than £708 after tax is not a rounding error. It is HMRC quietly helping themselves to your savings return before you have even noticed.

Savers should shop around as the gap between the average rate and the best rate remains significant. Loyalty to your existing bank and their products remains one of the most expensive habits in British financial life.
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Graham Nicoll
Financial Planner, Chartered FCSI at NCL Wealth Partners
The £138 headline highlights the value of the ISA wrapper, but savers shouldn’t let the tax tail wag the investment dog. Maximising ISA allowances is important, particularly for higher-rate taxpayers, but start with the purpose of the money: when will you need it, and for capital or income?

Shopping around for competitive rates is sensible, but continually opening accounts for marginal gains can create complexity and administration. More importantly, money intended for long-term growth may be better invested within an ISA rather than permanently held in cash.

ISAs should also sit within a wider financial plan. For higher earners, pension contributions can offer valuable upfront tax relief, while cash, investments and pensions each have different roles. The goal isn’t simply the best savings rate today, but the best combination of return, tax efficiency, access and long-term growth.
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Rob Mansfield
Independent Financial Advisor at Rootes Wealth Management
Rates edging up are good news for savers but it's important to consider the wider context. Inflation is eroding away the value of those savings and so you need to receive more just to stand still. If you're putting aside money for long term savings then using your ISA allowance can be a great move as it keeps your growth from going to the taxman.
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Philly Ponniah
Chartered Wealth Manager and Financial Coach at Philly Financial
The gap between a good savings account and a poor one can now be worth hundreds of pounds a year. With more than 2,600 deals available and fixed rates above 4%, savers should not assume their existing provider is competitive. Always look for a new rate after a year as you often get moved to a lower rate and make sure to use an ISA transfer form to keep the tax free wrapper.

Tax matters too. A higher-rate taxpayer only has a £500 Personal Savings Allowance, so at today’s rates even fairly modest savings can create a tax bill. That makes Cash ISAs increasingly valuable, particularly when ISA rates are matching or even beating taxable accounts.

The key is to shop around, but don’t chase a fraction of a percent without considering access - find something that pays monthly so if you need to take any out you aren’t penalised.
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Editor
Harvey Dhillon
Founder & CEO at Zmartly
Moneyfacts counts a record number of savings accounts, and that choice is the useful bit. The headline is oversold. That £138 isn't extra return, it's income tax a higher-rate saver doesn't have to pay, and the two accounts pay almost the same interest either way. So check your tax band before you move anything. If you stay in the basic-rate band with no other interest, a £1,000 personal savings allowance covers the example's £846, so the ISA saves you almost nothing. An additional-rate saver gets no allowance, gains the most, and is the one the example leaves out. Shopping around matters far more than the headline rate. On Moneyfacts' own ISA averages, the gap between easy access and a one-year fix is worth more than double that £138 on the same money. If you switch ISA, ask the new provider to arrange it. Take the money out yourself and you lose that much of this year's ISA allowance. Flexible ISAs let you put it back by 5 April, but earlier years' money only into the same account.