Savers now have more choice in terms of product availability "than ever before", as overall product choice rose by its biggest margin since June 2023 to a record 2,394 savings deals, Moneyfacts has revealed.

The Moneyfacts UK Savings Trends Treasury Report revealed that excluding ISAs, product count rose to 1,726 in February, which is the highest number of non-ISA products in more than 16 years.

Furthermore, the choice of cash ISAs increased for the third consecutive month to 668 deals, the highest on record.

Despite the increase in product availability, the average easy access rate fell to 2.41%, which is the lowest rate since July 2023. The average notice rate fell to 3.32%, the lowest since June 2023.

In this period, the average one-year fixed rate dropped to 3.81%, the lowest since 3.81%. The longer-term average fixed rate fell to its lowest level since November 2022, standing at 3.79%.

However, the average shelf life of fixed rate accounts in February increase by 31 days to 76 days. This is the biggest rise since August 2019 and the highest since March 2020.

Personal finance analyst at Moneyfacts, Caitlyn Eastell, said that savers now have “more choice than ever before”.

She stated: "Lesser-known banks help the market grow and can be a source of innovation as they typically need to compete harder for savers’ hard-earned cash. However, many average rates continue to fall across the board. Variable ISAs and non-ISAs are now at their lowest levels in almost three years, while most fixed rates are at their lowest in almost three years, except for long-term non-ISAs which are at their lowest in four.

"It would not be surprising if the fading rate environment leaves savers disheartened, but it’s vital that they do not give in to apathy as they can still get over 4% on the most competitive accounts."

Eastell added that with ISA season approaching, many providers will be competing to make their deals more enticing to customers.

She concluded: "The average bonus on a cash ISA has risen to its highest level in 16 years, active switchers reap the most rewards but it’s crucial to review the rate once it expires to avoid missing out in real terms.

"Tax-free accounts remain a popular and necessary option for many savers to avoid any unpleasant surprises in the form of a tax bill. Income tax bands are frozen until 2031, which could pull millions of consumers into the higher-rate bracket where their personal savings allowance is halved to £500."

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