Choice of savings products reaches 12-year high, website finds
The number of savings providers is at its highest level on Moneyfacts’ records going back to 2007.
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Your support makes all the difference.The choice of savings products has reached its best level in more than a decade, according to a financial information website.
Moneyfacts counted 2,014 savings deals, including Isas, available in July – the highest total since 2,020 deals were on offer in May 2012.
There were 571 cash Isa deals available in July, which was the highest number on Moneyfacts’ electronic records which started in February 2007.
The number of savings providers rose to 144, up from 139 last month, also the highest count on Moneyfacts’ records going back to 2007.
There were only 116 providers counted by Moneyfacts in May 2012.
The average easy access savings rate edged down to 3.11% in July, from 3.12% in June.
The average rate on an account for which notice has to be given is 4.29% – paying 1.18 percentage points more than the typical easy access account.
The average easy access Isa rate rose to 3.32% in July, from 3.31% in June.
The average notice Isa rate rose to 4.19%, from 4.14% in June.
The average one-year fixed bond rate rose to 4.65% in July, marking its highest point since January 2024.
The average one-year fixed Isa rate rose to 4.44% in July, up from 4.40% in June.
There were far fewer providers on the market in 2012, and the savings landscape has changed significantly over the years
Rachel Springall, a finance expert at Moneyfacts, said: “Savers may be pleased to see that not only has product choice risen to its highest point in over 12 years, but the variety of savings providers offering accounts has reached a record high.
“There were far fewer providers on the market in 2012, and the savings landscape has changed significantly over the years. A rise in both product choice and providers can instil an optimistic view for the savings market, particularly if the new participants are eager for deposits to fund their future lending and boost their rates to stand out from their peers.
“As there are over 2,000 different savings products on the market – which include fixed-rate bonds, easy access accounts, notice accounts and their cash Isa equivalents – it is imperative providers continue to tailor their product range to appeal to the unique needs of new and existing customers.
“Notice accounts and notice Isas are a more niche area of the savings market, but the average interest rates difference compared to their easy access counterparts has moved up to its highest point in six months.
“Savers could then earn a little more interest if they don’t need instant access to their pot. However, as murmurs continue of a cut to the Bank of England base rate in August, variable-rate accounts could face cuts.
“Savers may then wish to invest their cash in a fixed-rate bond or Isa, where both the average one-year and longer-term fixed rates rose month-on-month.”
Ms Springall continued: “Cash Isas have seen enormous growth since the start of 2024, with a rise of 114 options over the past six months alone – the number of options now stands at its highest point on our records which date back to 2007.”
Earlier this week, Moneyfacts said that savers have typically been earning lower rates of interest on easy access accounts which are closed to new business than the equivalent rates on “live” deals – making shopping around vital.
The latest findings were released as the Building Societies Association (BSA) highlighted a report from the the University of Bristol indicating that savings can have a positive impact on wellbeing.
UK Savings Week (September 9 to 15 2024), an annual campaign aimed at getting people engaged in the benefits of saving, commissioned the University of Bristol’s Personal Finance Research Centre to look at the role of savings in promoting positive wellbeing.
The report, sponsored by Yorkshire Building Society and analysing data over 10 years, indicated that regular savers were particularly likely to become home owners and less likely to fall into financial hardship.
Andrew Gall, head of savings at the BSA, said financial organisations must play a part by continuing to provide products and incentives that encourage better savings habits, adding: “There is also a role for the new Government in helping to build a nation of savers.”
“Enabling and expanding workplace savings schemes, clarifying the future of the Help to Save scheme, breaking down the penalties and barriers in Lifetime Isas, and building on the successes of the Isa regime can all help people to realise the short and long-term benefits of a savings habit.”