Moneyfacts UK Savings Trends Treasury Report data shows average fixed rate bond and ISA rates fell across the spectrum month-on-month, for the first time in six months.
- Product choice overall fell month-on-month to 2,188 savings deals (including ISAs). The choice of cash ISAs, however, rose to 616 deals, a new record high. The number of savings providers rose to 152, up from 151 last month, the highest count on our records.
- The average easy access rate rose month-on-month to 2.78%. The average notice rate fell to 3.78%, now at its lowest level since July 2023. The average notice rate pays 1.00% more than the average easy access rate.
- The average easy access ISA rate fell marginally to 3.02%. The average notice ISA rate fell to 3.71%, which is 0.69% more than the average easy access ISA rate, and is also at its lowest level since August 2023 (3.64%).
- The average one-year fixed bond rate fell to 4.11%, its biggest month-on-month fall since October 2024. The average longer-term fixed bond fell to 3.94%, its biggest month-on-month fall since September 2024.
- The average one-year fixed ISA rate fell to 4.02%, its biggest month-on-month fall since November 2024. The average longer-term fixed ISA rate fell to 3.87%, its biggest month-on-month fall since September 2024.
- The Moneyfacts Average Savings Rate fell to 3.59%, down from 3.65% month-on-month. It is down from 3.88% since May 2024, but higher than 3.20% in May 2023.
| Savings market analysis – average rates May-23May-24Apr-25May-25Average easy access rate2.06%3.11%2.76%2.78%Average easy access ISA rate2.26%3.34%3.03%3.02%Average notice rate2.89%4.28%3.80%3.78%Average notice ISA rate2.92%4.17%3.72%3.71%Average one-year fixed rate bond3.93%4.58%4.19%4.11%Average longer-term fixed rate bond*4.01%4.12%4.02%3.94%Average one-year fixed rate ISA3.80%4.42%4.12%4.02%Average longer-term fixed rate ISA*3.89%4.06%4.01%3.87%*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.Moneyfacts Average Savings Rate May-23May-24Apr-25May-25Moneyfacts Average Savings Rate3.20%3.88%3.65%3.59%Calculated from the total of all on-sale, core market, variable and fixed rate savings accounts and Cash ISAs. Standard exclusions apply: Regular savings, children’s accounts, LISAs and JISAs.Source: Moneyfacts Average Savings Rate. Savings market analysis – product count May-23May-24Apr-25May-25Number of live savings account options (excluding ISAs)1,3781,3881,5801,572Number of live ISA options493547611616Source: Moneyfacts Treasury Reports. | |
| Rachel Springall, Finance Expert at Moneyfacts, said: |
“Savers will be disappointed to see all fixed rates fall across the spectrum month-on-month, which has not occurred for six months. The reduction in the average longer-term fixed bond and ISA rates noted the most significant falls for over six months, and is a disheartening turn of events after they rose above 4% at the start of April. This demonstrates the volatility in future rate expectations, with rates expected to fall even further due to the recent cut to the Bank of England base rate. Those savers who prefer to lock into a short-term fixed deal will find the average one-year fixed bond rate fell by the biggest margin since October 2024 and that the rate has fallen by 0.47% year-on-year. The volatility surrounding the shelf-life of a fixed rate bond has escalated, falling to 36 days, down from 46 a month prior. Despite a fall in rates, fixed bonds and ISAs will still appeal to savers who want a guaranteed return on their investment.
“Those savers looking for a flexible pot for their cash will find the average return on an easy access account rose to 2.78%, but any calls for celebration are unlikely to last due to the base rate cut. Easy access accounts remain a firm favourite among savers, and encouragingly for them, they will find challenger banks are particularly active in this space, which now includes some new arrivals, such as Spring, part of Paragon Bank. The total number of providers rose as a result, to a new record high. Savers looking to protect their hard-earned cash from tax may be pleased to see a widening in the pool of cash ISAs, where there are now 616 options, a new record high.
“There was a notable mad dash of providers improving rates to draw in deposits before the end of the 2024/25 tax-year. However, as may be expected, cash ISA rates have since fallen but savers would be wise to take advantage of their ISA allowance regardless of any rate volatility in the months to come. Cash ISAs will no doubt be popular as millions of people are expected to pay higher-rate tax at 40% this tax-year, which will see their £1,000 Personal Savings Allowance (PSA) effectively halve to £500 as a result. Savers must make every effort to review their pots and shop around for a better deal as providers work hard to entice new business.”