The number of providers offering savings accounts rose from 142 in October to 149 the month after, according to data from the Moneyfacts UK Savings Trends Treasury Report.
There 2,015 savings accounts available to customers in November, a rise from 2,015 in October to 2,076 and the second-highest number of products recorded for over 17 years.
Of those options in November, 559 were ISAs and 1,517 were either regular savings accounts, notice accounts, fixed bonds or easy-access accounts.
While there were more options than ever for savers, the rates offered fell from what was on the table the previous month.
The average easy-access rate fell to 3.03% – a dip from 3.07% in October. But the biggest decrease month-on-month was with the average one-year fixed rate ISA, which fell from 4.18% to 4.06%.
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There was a flurry of rate drops, which included the average notice rate sliding to 4.2% and the average fixed rate bond going from 4.31% to 4.24%, its lowest point since June 2023.
Meanwhile, the average longer-term fixed bond is at its lowest point since March 2023, at 3.89%.
However, there was one increase in the market with the average notice ISA rate, which crept up from 4.03% to 4.05%.
The drop in average returns available in the market has followed the much-expected decision by the Monetary Policy Committee (MPC), which voted to cut the Bank of England base rate to 4.75%.
‘Bit of life injected into market’
Rachel Springall, finance expert at Moneyfacts, said: “Savers may be disappointed to see savings rates fall, but in positive news, there has been a bit of life injected into the market as more providers enter the fray. Product choice now stands at its second-highest level on our records and the variety of savings providers has reached a record high.
“These moves could instil a sense of optimism for savers who feel let down by the more familiar high street banks, as new challengers are more eager to attract deposits to fund their future lending. However, the months ahead will be challenging for both providers to keep abreast of rate adjustments and for savers to move quickly to secure a new deal.”
“This emphasises the necessity for savers to move quickly if they want to secure a lucrative guaranteed return on their cash. In recent weeks, the swap rate market has been volatile, which will cause providers to consider their pricing, such as with fixed bonds. However, while fixed bond rates are down month-on-month, the longer-term cuts are not as sharp as they have been on one-year fixed.”
Springall also added that many savers are still not earning “a single penny on their cash”.
She added: “According to the Bank of England, £252bn is sitting in UK current or savings accounts earning no interest whatsoever. It will be up to consumers to make time to move their hard-earned cash into an account [that] not just pays interest, but also provides a real return against the eroding impact of inflation, which is expected to stay above 2% for some time yet.”
