The selection of cash savings deals has hit its highest level since at least 2007, says the Moneyfacts website. Moneyfacts recorded 2,117 savings products, including cash Isas, available in December, marking the highest total since its records began in February 2007. The total included 575 cash Isas, also a new record high.
Some savings rates have been falling, following two Bank of England base rate cuts this year. Moneyfacts reported that the average easy access rate fell from 3.03% at the start of November to 2.95% at the beginning of December. This marked the largest month-on-month drop since June 2020 and the lowest rate recorded since September 2023. The average easy access Isa rate dropped to 3.15% in December from 3.24% in November, also marking the biggest drop since June 2020 and the lowest rate since September 2023.
The typical one-year fixed Isa rate remained unchanged compared with the start of November, at 4.06% in December, which was still at its lowest point since June 2023. The average longer-term fixed Isa (with a term over 550 days) rate rose to 3.89% in December, from 3.84% in November.
The difference in rate between the average one-year and longer-term fixed Isa stands at 0.17 percentage points the narrowest gap Moneyfacts has recorded since September 2023. Moneyfacts calculated the average interest rates based on a £5,000 deposit at the start of the month.
Rachel Springall, a finance expert at Moneyfacts, said: "Savers may find it encouraging to see product choice hitting a record high despite ongoing rate volatility. 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.
