Savers have “more choice than ever before” but rates continue falling

While savers have a record-high number of accounts to choose from, they shouldn’t delay if they want to secure a competitive rate.

The number of savings accounts and ISAs on the market saw a welcome boost this month, increasing from 1,661 at the start of January 2026 to 1,726 at the start of February, according to data from the latest Moneyfacts UK Savings Trends Treasury Report.

This was the largest month-on-month increase since June 2023 and means the number of accounts available is the highest on Moneyfacts’ records.

Within this total, the number of savings accounts (excluding ISAs) rose to 1,726, the most in more than 16 years, while the number of savings providers (also excluding ISAs) increased to 156, the highest on record.

“Savers now have more choice than ever before as the number of products and providers reach record-highs. Lesser-known banks help the market grow and can be a source of innovation as they typically need to compete harder for savers’ hard-earned cash,” Caitlyn Eastell, Personal Finance Analyst at Moneyfacts, commented.

Increased competition as we approach ISA season

As we enter the last few weeks of the 2025/26 tax-year, savers who are looking to use up their annual ISA allowance before it resets have even more accounts and providers to choose from.

For example, the number of cash ISAs rose for the third consecutive month to a record-high of 668 at the start of February. These ISAs were offered by 101 different providers (a joint record high), which could help boost competition as we approach the end of the tax-year, often known as ISA season.

“ISA season is quickly approaching, and many providers will be competing fiercely to make their deals more enticing to new customers,” Eastell explained.

She adds that the “average bonus on a cash ISA has risen to its highest level in 16 years”, which could reward those savers who actively review and switch their accounts. However, if savers are tempted by an attractive rate that’s bolstered by an introductory bonus for a limited period, they could find themselves earning significantly less if they don’t transfer to a different account once it ends.

This is why it’s crucial to regularly review your accounts and the interest earned to ensure you’re maximising the return on your money.

Rates fall but still benefits to switching

Despite the record-breaking choice for savers, interest rates on savings accounts and ISAs have continued to decline since the start of 2026.

Perhaps unsurprisingly, variable rates have seen particularly notable drops between the start of January and the start of February, with the average easy access ISA rate plummeting from 2.69% to 2.58% and the average easy access savings rate falling from 2.48% to 2.41%.

Meanwhile, the typical rate paid by one-year fixed ISAs and one-year fixed bonds fell by a few percentage points to 3.76% and 3.81% respectively.

“Variable ISAs and non-ISAs are now at their lowest levels in almost three years,” Eastell noted, while the average rates on one-year fixed bonds and ISAs haven’t been this low since April 2023.

Savings and ISAs with terms of 550 days or more fared slightly better, as the average rate on longer-term ISAs remained unchanged at 3.75% between January and February and the average longer-term fixed savings rate fell by just 0.01 percentage points to 3.79%.

But, even though lower rates could discourage savers from switching accounts as the potential returns are smaller than one year ago, for example, this is a dangerous attitude to have.

“It’s vital that they [savers] do not give in to apathy as they can still get over 4% on the most competitive accounts,” Eastell urged.

Indeed, at the time of writing (16 February 2026), the top easy access savings account pays 4.55% AER while the leading fixed bond pays 4.34% AER. However, savers will need to lock away their money for five years to qualify for this top fixed rate.