The number of cash ISA products available on the market has risen to 598 deals, its highest ever level, according to new data published by Moneyfacts.

Product choice across the savings market overall did fall slightly to 2,146 savings deals this month, although this is still the second highest count on Moneyfacts’ records, going back to February 2007.

The number of savings providers has fallen to 150 in March, down from 151 last month, which is also now still the second highest count on Moneyfacts’ records.

The average easy access rate fell month-on-month to 2.84% while the average easy access ISA rate fell to 3.02%, both of which are now at their lowest levels since August 2023.

Moneyfacts finance expert, Rachel Springall, said that variable savings rates across the savings spectrum had “become an inevitable casualty” of the Bank of England’s base rate cuts.

“As savings providers cut rates across easy access accounts, notice accounts and their equivalent cash ISAs, it has resulted in the lowest recorded average variable rates since August 2023,” she commented.

“Easy access accounts remain a staple for many savers due to their flexibility, but the cuts may encourage some to consider a fixed rate deal for a guaranteed return over the coming years.

“Cash ISAs continue to thrive, with the pool of products rising for a consecutive month, now standing at a record high of 598 deals. Despite the rise in choice this ISA season, cash ISAs have not been immune to rate cuts, but the longer-term fixed cash ISA rate managed to rise, albeit slightly, month-on-month. Cash ISAs are still very much a popular choice for their tax-free benefits.”

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