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Banks (Finance)

Savings Product Choice Hits Record High, But Few Beat Bank Rate

Strategic Insights

— 1 min read

The choice of cash savings products reached a new record high in September, with 2,289 savings deals, including cash Isas, available to consumers, according to analysis by Moneyfacts. This marks the highest total since 2007, when the company's records began. Despite the increase, however, only around a quarter of accounts on the market can beat the Bank of England base rate of 4%.

The high number of savings deals is largely due to the increase in cash Isas, which rose to 662 deals in September, a record high and the eighth monthly rise. The number of savings providers also rose to 155, a new high for Moneyfacts' records. However, despite the Bank of England base rate recently being reduced, only 26% of savings accounts on the market can beat it.

The average savings rate available fell to 3.46% in September, down from 3.50% in August. A year ago, the average savings rate was 3.80%, and in September 2023 it was 4.29%. Rachel Springall, a finance expert at Moneyfacts, warned that savers may see their pots eroded in real terms due to expected inflationary pressures, citing the 3.8% Consumer Prices Index (CPI) inflation rate.

Key Takeaways:

  • The choice of cash savings products reached a record high in September with 2,289 savings deals available, including cash Isas.
  • Only around a quarter of accounts on the market can beat the Bank of England base rate of 4%.
  • The number of savings providers rose to 155, a new high for Moneyfacts' records.
  • The average savings rate available fell to 3.46% in September, down from 3.50% in August.
  • Rachel Springall warned that savers may see their pots eroded in real terms due to expected inflationary pressures.
  • To beat the Bank of England base rate, savers need to lock into a fixed bond or cash Isa.

Statistics:

  • 2,289 savings deals available in September, including cash Isas, a record high since 2007.
  • 662 cash Isas available in September, a record high and the eighth monthly rise.
  • 155 savings providers available, a new high for Moneyfacts' records.
  • 26% of savings accounts on the market can beat the Bank of England base rate of 4%.
  • Average savings rate fell to 3.46% in September, down from 3.50% in August.
  • 3.80% Consumer Prices Index (CPI) inflation rate.

Sources:

  • Moneyfacts
  • Office for National Statistics (ONS)
  • Rachel Springall, finance expert at Moneyfacts

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