The number of savings products including ISAs that are available on the market has fallen to 2,188 deals in May, new data from Moneyfacts has shown.

Figures revealed that the choice of cash ISAs, however, has risen to 616 deals, a new record high.

Moneyfacts, publishing its latest UK Savings Trends Treasury Report for May, also revealed, that the number of savings providers increased to 152, up from 151 last month, which is the highest count on its records.

In terms of rates on offer from savings providers, the Moneyfacts analysis also revealed that the average easy access rate increased month-on-month to 2.78%. The average notice rate fell to 3.78%, which is now at its lowest level since July 2023.

For easy access ISAs, the average rate fell marginally from last month to 3.02%, while the average notice ISA rate fell to 3.71%.

Finance expert at Moneyfacts, Rachel Springall, said that savers would be “disappointed” to see all fixed rates fall across the spectrum.

“This demonstrates the volatility in future rate expectations, with rates expected to fall even further due to the recent cut to the Bank of England base rate,” Springall said.

She added: “There was a notable mad dash of providers improving rates to draw in deposits before the end of the 2024/25 tax-year. However, as may be expected, cash ISA rates have since fallen but savers would be wise to take advantage of their ISA allowance regardless of any rate volatility in the months to come.

“Cash ISAs will no doubt be popular as millions of people are expected to pay higher-rate tax at 40% this tax-year, which will see their £1,000 personal savings allowance effectively halve to £500 as a result. Savers must make every effort to review their pots and shop around for a better deal as providers work hard to entice new business.”

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