Caitlyn Eastell, Personal Finance Analyst at Moneyfacts, said:
“Savers have reason to be encouraged as competition across the savings market shows no signs of slowing. This month, product choice has reached 2,583, setting a new record-high for the sixth consecutive month. Not only this, but savers can benefit from the widest range of interest-rate busting options seen in over six years, as 1,385 deals now outpace Base Rate, accounting for over half the market. While savers are winning, for providers, the intensifying competition means the cost of attracting and keeping savers’ money is rising, putting more pressure on margins. However, this may be necessary, particularly for providers looking to support any lending activity and manage their funding.
“The good news for savers continues, many savings rates continue to rise and reach multi-year highs. One option faring best is the average non-ISA easy access account which saw its biggest monthly rise since October 2023 to 2.53%. However, there is more opportunity beyond average rates, as the most competitive accounts offer significantly higher returns. A saver with £10,000 in an account paying 2.53% would earn £253 in interest over a year, but a simple switch could see this jump to around £500 in a top account, a difference of almost £250 a year. On larger balances, the benefit of switching becomes even more significant. Fixed-rate savers are also benefiting from stronger returns, with the average non-ISA one-year and longer-term rates rising for a fifth consecutive month running to their highest levels since 2024 to 4.22% and 4.24% respectively.
“The current condition of the savings market strongly favours active savers. Regularly reviewing and switching accounts can make a meaningful difference to how quickly savings grow, helping savers benefit from the most competitive rates available. Those who leave money sitting in older or lower-paying accounts risk missing out on hundreds of pounds in potential interest.”
Caitlyn Eastell, Personal Finance Analyst at Moneyfacts, said:
“Savers have reason to be encouraged as competition across the savings market shows no signs of slowing. This month, product choice has reached 2,583, setting a new record-high for the sixth consecutive month. Not only this, but savers can benefit from the widest range of interest-rate busting options seen in over six years, as 1,385 deals now outpace Base Rate, accounting for over half the market. While savers are winning, for providers, the intensifying competition means the cost of attracting and keeping savers’ money is rising, putting more pressure on margins. However, this may be necessary, particularly for providers looking to support any lending activity and manage their funding.
“The good news for savers continues, many savings rates continue to rise and reach multi-year highs. One option faring best is the average non-ISA easy access account which saw its biggest monthly rise since October 2023 to 2.53%. However, there is more opportunity beyond average rates, as the most competitive accounts offer significantly higher returns. A saver with £10,000 in an account paying 2.53% would earn £253 in interest over a year, but a simple switch could see this jump to around £500 in a top account, a difference of almost £250 a year. On larger balances, the benefit of switching becomes even more significant. Fixed-rate savers are also benefiting from stronger returns, with the average non-ISA one-year and longer-term rates rising for a fifth consecutive month running to their highest levels since 2024 to 4.22% and 4.24% respectively.
“The current condition of the savings market strongly favours active savers. Regularly reviewing and switching accounts can make a meaningful difference to how quickly savings grow, helping savers benefit from the most competitive rates available. Those who leave money sitting in older or lower-paying accounts risk missing out on hundreds of pounds in potential interest.”
