Product choice in the savings market has increased to 2,235 deals including ISAs, a new record high.

This is according to the latest figures published by Moneyfacts, which indicated that the choice of cash ISAs has also a new record high this month, at 639 deals.

Moneyfacts also reported that the number of savings providers has risen to 153, up from 152 last month, which has also set another record.

In terms of the current rates on the available deals across the savings market, the average easy access rate has fallen in June to 2.71%, now at its lowest level since July 2023 (2.41%). The average notice rate fell to 3.67%, also at its lowest level since July 2023 (3.43%).

For easy access ISAs, the average rate fell to 2.98%, its lowest level since August 2023 (2.86%), while the average notice ISA rate fell to 3.55%, a level 0.57% more than the average easy access ISA rate, but at its lowest level since July 2023 (3.25%).

Finance expert at Moneyfacts, Rachel Springall, said that savers would be “encouraged” to see the array of providers and overall choice of deals reaching new record highs.

“The steady rise of challenger banks has been a big contributing factor over recent years, and the variety of accounts to land onto the market can be useful for customers who have diverging needs,” Springall added.

“However, the recent cut to the Bank of England base rate may well dampen such growth in product choice and new rivals, as it has led to cuts to variable savings rates. As a result, the average easy access and notice rates, as well as their cash ISA counterparts, have fallen to their lowest levels in almost two years.”

Springall commented that cash ISAs are currently “highly sought after”, with Bank of England figures recently revealing a record monthly high of deposits of around £14bn during April.

She added that the popularity of the cash ISA product is “expected to linger”, with millions of people expected to pay higher-rate tax at 40% this tax-year.

“Thankfully the choice of cash ISAs continues to thrive, reaching a new record high this month,” Springall continued.

“Providers must continue to work hard to support their new and existing customers and savers must ensure they stay within their personal savings allowance (PSA) and take full advantage of their ISA allowance when reviewing their pots or shopping around for a new deal.”

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