The number of savings products available on the market has breached the 2,000 mark for the first time in 12 years, new analysis from Moneyfacts has indicated.

Product choice has climbed to 2,014 savings deals in July, the highest count since May 2012 when there were 2,020.

Among the latest total, the choice of cash ISAs rose to 571 deals, which was the highest count on Moneyfacts’ electronic records dating back to February 2007. The number of savings providers increased to 144, up from 139 last month, also the highest count on Moneyfacts’ records.

However, the figures revealed that there were far fewer savings providers in May 2012, at just 116, when product choice was last above 2,000 options.

“A rise in both product choice and providers can instil an optimistic view for the savings market, particularly if the new participants are eager for deposits to fund their future lending and boost their rates to stand out from their peers,” finance expert at Moneyfacts, Rachel Springall, said.

“As there are over 2,000 different savings products on the market – which include fixed rate bonds, easy access accounts, notice accounts and their cash ISA equivalents – it is imperative providers continue to tailor their product range to appeal to the unique needs of new and existing customers.”

Moneyfacts also reported a month-on-month fall in the average easy access rate to 3.11%, while at the same time the average notice rate climbed to 4.29%.

With the average notice rate paying 1.18% more than the average easy access rate, it is the biggest difference in six months, since a difference of 1.23% in January.

“Notice accounts and notice ISAs are a more niche area of the savings market, but the average interest rates difference compared to their easy access counterparts has moved up to its highest point in six months,” added Springall. “Savers could then earn a little more interest if they don’t need instant access to their pot.

“However, as murmurs continue of a cut to the Bank of England base rate in August, variable rate accounts could face cuts. Savers may then wish to invest their cash in a fixed rate bond or ISA, where both the average one-year and longer-term fixed rates rose month-on-month.”

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