Moneyfacts UK Savings Trends Treasury Report data reveals that average savings rates for easy access, fixed bonds and ISAs have fallen to their lowest levels seen since records began pre-credit crash. The only average rate not to fall to a record low has been for notice accounts. This demonstrates that the savings market has continued to deteriorate following the effects of the two base rate cuts seen in March and continued uncertainties surrounding the Coronavirus (Covid-19) pandemic.
The average easy access rate has dropped to a record low of 0.30% but may still fall further. Despite this, savers are still turning to these flexible vehicles according to deposit data from the Bank of England. Indeed, during April, £10.5bn flowed into interest-bearing sight deposits, which include easy access accounts.
Savings providers continued to withdraw deals last month and this has resulted in the number of savings products (excluding ISAs) to drop to the lowest level since our records for this data began in February 2007, to stand at 1,133 down from 1,212 last month. This, combined with the number of ISA products, means the total number of savings deals stands at 1,456, the lowest seen since November 2016 (1,438). Since the start of 2020, the number of overall deals has plummeted by 329.
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