The group’s UK Savings Trends Treasury Report data shows that there are 2,117 savings deals (including ISAs) available in December 2024, the highest count on its records, which started in February 2007.
When it comes to rates, Moneyfacts’ analysis found that the average easy-access rate fell month-on-month to 2.95%, its biggest drop since June 2020 and at its lowest since September 2023. The average notice rate fell to 4.09%. Moneyfacts noted that the average notice rate pays 1.14% more than the average easy-access rate.
The average easy-access ISA rate fell to 3.15% in December 2024, its biggest drop since June 2020 and at its lowest since September 2023. The average notice ISA rate fell to 3.97%. The average notice ISA rate pays 0.82% more than the average easy-access ISA rate.
The average one-year fixed bond rate now stands at 4.18%, its lowest point since May 2023. The average longer-term fixed bond has risen to 3.9%, its first rise since July 2024.
The average one-year fixed ISA rate currently stands at 4.06%, remaining at its lowest point since June 2023. The average longer-term fixed ISA rose to 3.89%, its biggest rise since September 2023. The difference in rate between the average one-year and longer-term fixed ISAs stands at 0.17%, the smallest since September 2023.
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Rachel Springall, finance expert at Moneyfacts, said: “Savers may find it encouraging to see product choice hitting a record high despite ongoing rate volatility. The savings landscape has changed significantly over the years, and a rise in product choice can instil an optimistic view for savers who need different types of accounts to suit various needs. Challenger banks have notably worked hard this year in injecting some healthy competition into the market, with their intent to draw in funds for their future lending. However, average rates’ moves showed mixed signs month-on-month; while some fell or remained unchanged, longer-term fixed rates rose.
“Easy-access accounts have been the casualty from cuts to the Bank of England base rate; the average rate has felt its biggest monthly drop in over four years (June 2020). Notice accounts also took a hit, seeing a notable monthly drop. As murmurs continue of more cuts to base rate next year, variable-rate accounts could be doomed to drop further.
“Savers may then wish to invest their cash in a fixed rate bond or ISA for a guaranteed return. Longer-term fixed options may become more popular in the months ahead, but it is worth noting that the average one-year fixed bond rate has outpaced the longer-term [one] for over a year, and the difference between the two stands at 0.28%.”
