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UK Savings Week: Savers experiencing highest rates since 2008

Emma Lunn
Written By:
Emma Lunn

Savers have seen rates on easy access, notice and ISA equivalents accounts reach their highest levels since 2008, finance data shows.

The average easy access rate has risen to 2.95% and the average notice rate  to 4.04%, hitting more than 4% for the first time since March 2008, its previous highest point since Moneyfacts’ records began.

Easy access ISA rates rose month-on-month to 3.04% too, while the average notice ISA rate rose to 3.89%, proving to be the highest rate since November 2008 (4.91%).

All variable rates rose for the 19th consecutive month, which has not happened in the time Moneyfacts have published its savings trends report.

The report comes at the beginning of UK Savings Week, during which YourMoney.com reported a separate study by the Building Societies Association (BSA) that showed one in three (30%) savers do not shop around when looking for a savings account.

Average fixed rates have risen due to ‘intensive competition’

Rachel Springall, finance expert at Moneyfacts, said: “Savers may be delighted to see average rates reaching levels not seen since 2008. The average rates on one-year and longer-term fixed bonds and ISAs all stand above 5% for the first time in almost 15 years (November 2008). Due to intensive competition among challenger banks, average fixed rates have risen for the past six months.

“This will come as good news to those who may be coming to the end of their fixed bond or ISA, as much higher returns can be found. The average one-year fixed bond rate was 2.29% in September 2022; it’s now 5.34%, on a £20,000 lump sum investment, that’s an extra £610 in interest after one year.

“Those savers who want flexibility with their cash will find the average easy access rate rose to 2.95%, its highest point since November 2008, when it was 3.63%. At the time, the Bank of England base rate was 4.50%; it now stands at 5.25%. There is room for improvement and some savers may not be feeling the full benefits of the consecutive base rate rises, nor might they be getting the best possible return if they fail to switch.”

Savings market analysis

Sep-21 Sep-22 Aug-23 Sep-23
Average easy access rate 0.17% 0.84% 2.80% 2.95%
Average easy access ISA rate 0.24% 0.92% 2.86% 3.04%
Average notice rate 0.47% 1.41% 3.83% 4.04%
Average notice ISA rate 0.31% 1.21% 3.64% 3.89%
Average one-year fixed rate bond 0.67% 2.29% 5.18% 5.34%
Average longer-term fixed rate bond* 0.94% 2.67% 5.00% 5.12%
Average one-year fixed rate ISA 0.49% 1.96% 5.00% 5.19%
Average longer-term fixed rate ISA* 0.79% 2.35% 4.91% 5.02%
*Longer-term fixed bonds or ISAs are those with terms over 550 days. Average interest rates based on a £5,000 deposit as at the start of the month.
Source: Moneyfacts Treasury Reports
Savings market analysis – product count
Sep-21 Sep-22 Aug-23 Sep-23
Number of live savings account options (excluding ISAs) 1,210 1,317 1,443 1,421
Number of live ISA options 363 437 518 516
Source: Moneyfacts Treasury Reports