Caitlyn Eastell, Personal Finance Analyst at Moneyfacts, said:

“Savers have been handed another welcome boost this month, with fixed savings rates continuing to climb and competition remaining incredibly strong across the market. The average one-year fixed rate has now risen for six consecutive months, while longer-term fixed rates rose for a seventh month, yet again reaching multi-year highs. This continued upward movement is positive news for savers who are looking to secure a guaranteed return, particularly those who have been waiting to see if rates could climb even higher. It also means that savers who locked away their cash some time ago could now find significantly more competitive options available. 

“For the first time since May, average shelf-life on fixed products has jumped, going from 32 days to 43 days. This could indicate that providers are becoming more comfortable holding onto competitive deals for longer, however, it may also be out of necessity. Rising borrowing costs can quickly weigh on providers’ margins, so it’s crucial they can draw in sufficient funding to support other areas, such as lending. The rise may also give savers more breathing space to compare their options rather than feeling they must rush into a decision. 

“The latest Bank of England money and credit figures suggest savers may be increasingly taking control of their cash. While almost £3.5 billion came out from easy access and current accounts, households’ overall deposits still increased by £3.8 billion, showing that savers are reassessing where their money is being held and moving their cash between different accounts. During times of uncertainty, this is a healthy habit to sustain and can help savers balance their financial needs. With savings choice at record levels, it’s easier than ever for savers to find better homes for their cash and protect their returns.”