Savers could secure some of their strongest fixed returns in years as fixed-rate ISAs move ahead of comparable non-ISA accounts, according to Moneyfacts UK Savings Trends Treasury Report data.

The number of savings products has reached a record 2,617, including 746 cash ISAs, while the number of non-ISA deals has risen to an all-time high of 1,871. There are now 159 savings providers, with 106 offering ISAs.

The average one-year fixed savings rate increased to 4.23%, its highest level since November 2024, while the average longer-term fixed rate rose to 4.25%, the highest since January 2024.

Fixed ISA rates also strengthened, with the average one-year rate reaching 4.24% and the longer-term rate rising to 4.27%, its highest level since January 2024. The average easy-access rate remained at 2.53%, while the average notice rate was unchanged at 3.40%.

The number of accounts paying above the Bank of England (BoE) base rate on £5,000 balances climbed to 1,412, the highest since July 2012. The Moneyfacts average new savings rate also increased for the sixth consecutive time, reaching 3.60% from 3.50% a year earlier.

Moneyfacts personal finance analyst Caitlyn Eastell said: "The fixed rate savings market is shifting in favour of ISA savers, with average one-year and long-term ISA rates now moving ahead of their non-ISA counterparts.

"Historically, savers have often faced a trade-off between securing competitive rates outside an ISA or keeping their interest tax-free. However, this shift could mean that this compromise may no longer be necessary.

"Not only this, but longer-term rates have consistently remained higher than their one-year equals, with the average non-ISA rate higher for the past six months and the ISA rate for the past two months. This could be a valuable opportunity for savers who can afford to leave their money untouched to secure a competitive return and protect themselves against any future falls in savings rates.”

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