Choice of cash savings deals reached highest level on website’s records
Moneyfacts counted 2,117 savings deals in December, marking the highest number on its records, which started in 2007.
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Your support makes all the difference.The choice of cash savings deals has reached its highest levels since at least 2007, according to a financial information website.
Moneyfacts counted 2,117 savings products available, including cash Isas, in December, marking the highest total since its records started in February 2007.
Within the total, there were 575 cash Isas, which was also a new record high, Moneyfacts said.
Although the number of savings deals on offer has increased, some savings rates have been falling, with two Bank of England base rate cuts having taken place this year.
Moneyfacts said the average easy access rate on offer fell from 3.03% at the start of November to 2.95% at the start of December.
Easy access accounts have been the casualty from cuts to the Bank of England base rate
It marked the biggest month-on-month drop since June 2020 and the lowest rate recorded since September 2023.
The average easy access Isa rate fell to 3.15% in December from 3.24% in November, also marking the biggest drop since June 2020 and the lowest rate since September 2023.
The typical one-year fixed Isa rate remained unchanged compared with the start of November, at 4.06% in December, which was still at its lowest point since June 2023.
The average longer-term fixed Isa (with a term over 550 days) rate rose to 3.89% in December, from 3.84% in November.
The difference in rate between the average one-year and longer-term fixed Isa stands at 0.17 percentage points – the narrowest gap Moneyfacts has recorded since September 2023.
Average interest rates were calculated by Moneyfacts based on savers having a £5,000 deposit at the start of the month.
Rachel Springall, a finance expert at Moneyfacts, said: “Savers may find it encouraging to see product choice hitting a record high despite ongoing rate volatility.”
Variable rate accounts could be doomed to drop further
She said savers may need to have a range of different products to suit their needs, adding: “Challenger banks have notably worked hard this year in injecting some healthy competition into the market, with their intent to draw in funds for their future lending. However, average rates moves showed mixed signs month-on-month; while some fell or remained unchanged, longer-term fixed rates rose.
“Easy access accounts have been the casualty from cuts to the Bank of England base rate; the average rate has felt its biggest monthly drop in over four years.”
Ms Springall added: “As murmurs continue of more cuts to base rate next year, variable rate accounts could be doomed to drop further.
“Savers may then wish to invest their cash in a fixed-rate bond or Isa for a guaranteed return.”
She continued: “The choice of cash Isas has seen enormous growth in 2024, which is encouraging news for savers looking to utilise their Isa allowance.
“The number of options now stands at its highest point on our records, which date back to 2007. In a similar pattern to fixed bonds, the average one-year fixed Isa rate has surpassed the longer-term equivalent for over a year.”