The largest decreases were in the fixed-term market, with variable rates maintaining a healthier highest rate by dipping just 0.16%.
But the highest three-year fix is priced at 4.67%, which signifies a 0.58% slide from its price between January and April, Hargreaves Lansdown figures show.
The top easy-access rate for ISAs is currently beating the non-ISA equivalent too, with cash savings platforms preferred by savers over banks and building societies.
Those trends are expected to continue for the rest of 2024 too.
Base rate predicted to fall to 4.5% by end of 2024
Alongside many other financial experts, Hargreaves Lansdown predicts the Bank of England will end the base rate stalemate, potentially as soon as May.
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It projects the rate will plunge from its current 5.25% rate down to 4.5% by the end of 2024. The knock-on effect will lead to easy-access rates being priced at 4-4.5% and fixed terms sticking around 4.5-5%.
Last month, four out of five savings accounts beat the rate of inflation, but savers may wish to act fast, as those times may be coming to an end.
Mark Hicks, head of active savings at Hargreaves Lansdown, which won Best Lifetime Investment ISA at the YourMoney.com Awards 2024, says the downward trend of savings rates “is as a result of stronger economic data, which has pushed back expectations of rate cuts from central banks.”
‘Peak ISA season will lead to competitive market’
Hicks said: “At the start of the year, we predicted that the yield curve would continue to flatten but, as a result of the rises that we have seen in March, this trend is still reversing.”
“Bank of England data shows that savers continue to deposit money into banks and building societies, with February figures showing that this trend has continued for five straight months.
“During peak ISA season, we’re seeing that market become more competitive, particularly in variable rate products, as ISA providers compete for cash.”
Below is a table of how the savings rates have changed since January 2024, using the investment service’s data.
Decline in savings rates by product
Easy access | One-year fix | Two-year fix | Three-year fix | Five-year fix | |
Highest rate (1st Jan) | 5.22% | 5.8% | 5.5% | 5.25% | 5% |
Highest rate (1st April) | 5.06% | 5.25% | 5.06% | 4.67% | 4.55% |
Change | -0.16% | -0.55% | -0.44% | -0.58% | -0.45% |