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Featured - Account Types
What type of savings account do you need?Find out about the different types of savings accounts available to suit a variety of needs.
Savings
ISAs
Residential
Buy to let
Specialist mortgages
Featured - Debt and your credit score
How debt impacts your credit scoreA healthy credit score has its benefits, so make sure you manage your debt correctly.
Loans
Featured - Life Insurance
Life InsuranceFor peace of mind that your loved ones will be supported financially after you die, consider taking our life insurance. Find out more and compare policies.
Home & vehicle
Health & travel
Featured - High interest current accounts
Find current accounts offering in-credit interest rates up to 5.00% AER.
Current accounts
Featured - Purchase Cards
Best purchase credit cardsExplore the best cards with a 0% introductory period.
Credit cards
Credit repair
Calculators & guides
Business savings
Business products
Business insurance
How much can I give as a cash gift?
How much can I give as a cash gift?Will your loved one's gift be tax affected?
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The number of savings accounts and ISAs available also dropped month-on-month.
Savings and ISA rates fell across both fixed and variable sectors in August, according to the Moneyfacts UK Savings Trends Treasury Report.
This is the first time all rates dropped month-on-month since the start of 2024.
Savers have enjoyed high interest rates over the past year so news of their decline will be disappointing, but perhaps not too surprising as many providers started to make cuts after the Bank of England lowered the base rate to 5% at the start of the month.
While variable rates are particularly affected by changes in the base rate, fixed savings rates also saw significant reductions throughout August.
The average easy access cash ISA rate fell from 3.36% at the start of August to 3.29% at the start of September.
Meanwhile, the average notice ISA rate saw an even larger drop from 4.22% to 4.08% over the same period.
“Cash ISAs caught up with the rate-cutting trend during August and noted the biggest month-on-month fall to the average easy access ISA rate and notice ISA rate in over four years,” Rachel Springall, Finance Expert at Moneyfacts, pointed out.
“Fixed ISAs also dropped by notable margins month-on-month,” she added, with the average rates of one-year ISAs and longer-term fixed ISAs (fixed ISAs with terms of more than 550 days) seeing their largest monthly falls since February 2024.
The average one-year ISA rate dropped to 4.29% at the start of the month while the average longer-term fixed ISA paid an even lower 3.92%. This compared to 4.46% and 4.08% respectively at the start of August.
Rates on standard savings accounts also declined in August, with fixed bonds seeing a more notable drop than variable accounts.
The average easy access and notice rates both fell by 0.07 percentage points to stand at 3.07% and 4.23% respectively at the beginning of September.
However, one-year fixed bonds fared even worse as average rates fell from 4.63% to 4.43% in the month to September.
And, for savers looking to lock away their money for more than one year, the average rate on longer-term bonds dropped to 3.99% in September, the first time it has dipped below 4% since April 2023.
It seems likely that savings rates will continue their downwards trend, particularly as many experts expect a further cut to the base rate before the end of the year.
As a result, it’s important to review your savings to see if you’re getting the best return on your money, especially if you haven’t checked your current interest rate or switched accounts in several years.
There were 1,447 savings accounts to choose from at the start of September. Although this was slightly lower than the 1,455 options available in August, there are still plenty of accounts for savers, including some that continue to pay competitive rates.
“Whichever account savers choose, it is imperative that they explore the more unfamiliar brands, as challenger banks currently pay some of the best rates on the market,” Springall explained.
“However, these deals can change quickly, as providers need to react swiftly to any market movements to compete with their peers,” she continued.
See our charts for the latest list of the top savings and ISA rates.
Alternatively, you can read our weekly ISA roundup or savings roundup for a quick overview of the leading rates.
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Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfactscompare.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.
Each week the Moneyfactscompare.co.uk content team round up and discuss the very best ISA rates available in the UK. Compare and apply today.
Savers continue to build up their ISA pots as leading rates stay largely unchanged.
Air fares made the largest upwards contribution as average motor fuel prices fell. Find out more.
Air fares made the largest upwards contribution as average motor fuel prices fell.
Average fixed ISA returns maintained stability, and even saw month-on-month increases in August.
Average fixed ISA returns maintained stability, and even saw month-on-month increases in August.
Each week the Moneyfactscompare.co.uk content team round up and discuss the very best ISA rates available in the UK. Compare and apply today.
Savers continue to build up their ISA pots as leading rates stay largely unchanged.
Air fares made the largest upwards contribution as average motor fuel prices fell. Find out more.
Air fares made the largest upwards contribution as average motor fuel prices fell.
Average fixed ISA returns maintained stability, and even saw month-on-month increases in August.
Average fixed ISA returns maintained stability, and even saw month-on-month increases in August.
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Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.
Moneyfactscompare.co.uk will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by Moneyfactscompare.co.uk will always be from news@moneyfacts-news.co.uk. Be ScamSmart.