Cash ISA rates recover from record lows
Moneyfacts’ UK Savings Trends Treasury Report data found that average ISA rates rose across the board month-on-month in November, with all average ISA rates moving away from record lows.
The average easy access ISA rate rose to its highest level during 2021, to 0.19%. The average notice rate rose for the seventh month running, now 0.55%, its highest point since June 2020 when it was 0.69%.
November has also seen more choice of ISAs, with 382 products to choose from, the highest seen since March 2020 when there were 417 deals.
The average one-year bond now pays 0.77%, compared to 0.61% a year ago. The average longer-term bond pays 1.06%, compared to 0.87% this time last year.
Rachel Springall, finance expert at Moneyfacts, said: “Savers may well have been disappointed that the Bank of England did not increase interest rates this month, but regardless, the savings market has been moving in a positive direction. One area of the savings arena to make a comeback from record low rates has been Cash ISAs, as with the notice ISA rate rising month-on-month, no longer is there an average savings rate resting at a record low. There does however remain a difference between the top fixed ISA and non-ISA rates so savers will need to think carefully which is the most suitable for their needs.
“Fixed bond rates continue to rise, thanks to a healthy injection of competition among challenger banks, which means both the average one-year fixed and longer-term fixed rate bond has risen for seven consecutive months. Savers coming off a one-year fixed deal will be pleased to see the average one-year bond stands at 0.77%, up from 0.61% a year ago. While much of the rate focus has been within this arena, there has also been an uplift to longer-term fixed rates, with the average longer-term fixed rate bond of 1.06% now at its highest level since May 2020.”