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Lucky for some? Savings rates climb for 13th month on the spin

Emma Lunn
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Emma Lunn

All average variable savings rates have risen for the 13th consecutive month, according to Moneyfacts.

This is the first time easy access, notice and ISA equivalents have all risen for so many months in a row since Moneyfacts starting compiling its UK Savings Trends Treasury data in February 2007.

The rate hikes follow a series of increases to the Bank of England base rate, with the rate upped to 4.25% last week.

According to Moneyfacts, both the average easy access savings and notice rates have hit their highest levels in more than 14 years.

The average easy access savings rate rose to 1.85% in March 2023 and stands at its highest point since December 2008 (2.58%). The average notice rate rose to 2.61%, the highest rate since December 2008 (2.64%).

The average easy access ISA rate rose month on month to 2.01% and stands at its highest point since February 2009 (2.02%). The average notice ISA rate rose to 2.64% and is at its highest since January 2009 (2.96%).

Moneyfacts found the average one-year fixed bond rose to 3.65% and stands at its highest point since December 2008 (4.43%). But the average longer-term fixed bond fell to 3.86%.

The average one-year fixed ISA rose to 3.56% in March, its highest point since December 2008 (4.58%). The average longer-term fixed ISA rate rose to 3.72% and stands at its highest point since May 2011 (3.78%).

‘Savings market is buoyant’

Rachel Springall, finance expert at Moneyfacts, said: “As a new tax year looms, it is encouraging to see interest rates have improved across cash ISAs for those savers who still need to utilise their ISA allowance. The savings market overall is going through a buoyant period thanks to a mix of rate competition, base rate rises and the rush of launching enticing offers for savers looking for a deal before the 2023/2024 tax year begins.

“It is imperative that consumers take time to check any variable rates they have against the top rates, especially as the average easy access rate is 1.60% higher than a year ago. There will be accounts out there which have not received the full benefits of base rate rises and it is down to savers to compare and switch. Growing choice in the market means it is more important than ever for savers to consider both unfamiliar and household names, as there are now more overall savings deals on the market since October 2022.”