Cash ISA returns are showing signs of resilience despite recent falls in fixed bond rates, new analysis by Moneyfacts has shown.

The latest UK Savings Trends Treasury Report by Moneyfacts showed that the average easy access rate rose month-on-month in August to 3.14%, while the average notice rate rose to 4.30%, a difference of 1.16%.

Moneyfacts also revealed that the average easy access ISA rate rose month-on-month to 3.36% while the average notice ISA rate rose to 4.22%, meaning the average notice ISA rate now pays 0.86% more than the average easy access ISA rate.

Meanwhile, the average one-year fixed bond rate fell to 4.63%, as the average longer-term fixed bond has fallen to 4.13%. The difference in rate between the average one-year and longer-term fixed bond stands at 0.50%, with the one-year bond paying a higher average return.

“Savers will no doubt be concerned over falling interest rates due to the 0.25% cut to the Bank of England base rate, but our savings trends that were observed prior to the cut revealed an interesting split in how providers were readjusting their market positions with rate tweaks prior to the announcement,” finance expert at Moneyfacts, Rachel Springall, said.

“Over the past few months, fixed rate bonds and Cash ISAs have been on the downward trend, largely due to the markets expecting future interest rates to come down. Despite the rate cuts since the start of 2024, the availability of products has been on the rise, and as we noted last month, product count is at its highest level in over 12 years.”

Moneyfacts’ latest data showed that product choice overall in August increased month-on-month to 2,024 savings deals, including ISAs, which was the highest count since April 2012 (2,093).

The choice of Cash ISAs, however, fell slightly to 569 deals, the first fall since April this year.

The number of savings providers remained at 144, which was still the highest count on Moneyfacts’ records, which started in February 2007.

“One area of the savings market to show resilience between the start of July and the start of August was Cash ISAs, with both the average one and longer-term fixed rates refusing to move in the same direction as their fixed rate bond counterparts,” Springall added.

“A similar story can be seen from both the average easy access and notice Cash ISA rates, where these both rose month-on-month.

“It will be interesting to see how both the average rates and overall product availability will be impacted by the base rate cut in the coming months. This would be a great opportunity for savers to review their accounts and switch if they feel they are not being rewarded for their loyalty.”

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