Cash Isa rates moving up from previous record lows

The savings market has been moving in a ‘positive direction’, according to Moneyfacts.co.uk.

Cash Isa rates are starting to move up from previous record lows, according to Moneyfacts.co.uk (Gareth Fuller/PA) (PA Archive)

Cash Isa rates are starting to move up from previous record lows, according to a financial information website.

However, the typical rates available are still only a fraction of what savers could have received a couple of years ago.

Like some mortgage rates, the savings rates on the market have been creeping up recently amid providers’ expectations that the Bank of England base rate will potentially increase soon.

The choice of deals is also improving, with 382 products available, marking the highest number since March 2020 when there 417 deals, Moneyfacts.co.uk said.

The average easy access Isa rate moved up to 0.26% in November, from 0.25% in October, although two years ago in November 2019 savers could typically have found a significantly higher rate of 0.87%.

Savings market has been moving in a positive direction

Rachel Springall, Moneyfacts.co.uk

The average Isa rate where savers have to give notice to access their money is now 0.37%, up from 0.31% in October. Moneyfacts said it was the first time that average notice Isa rates have increased since September 2020.

In November 2019, the average notice Isa rate was also much higher, at 1.15%.

Savers looking for a one-year fixed-rate Isa can get a rate of 0.56% on average, up from 0.53% last month.

Two years ago however, savers could typically achieve more than double this, at 1.21%.

Looking at Isa terms of more than 550 days, the average rate available is 0.92%, up from 0.83% in October. Two years ago the average rate for this type of Isa deal was 1.35%.

Moneyfacts’ calculations are based on savers having £5,000 to put away.

Rachel Springall, a finance expert at Moneyfacts said: “Savers may well have been disappointed that the Bank of England did not increase interest rates this month, but regardless, the savings market has been moving in a positive direction.

“One area of the savings arena to make a comeback from record low rates has been cash Isas as with the notice Isa rate rising month-on-month, no longer is there an average savings rate resting at a record low.”