The average UK savings rate has risen 16 basis points in the past year, growing for the seventh month in a row in August, according to data from the Moneyfacts UK Savings Trends Treasury report.
At 3.62%, the average new savings rate is around 0.7 percentage points ahead of the consumer prices index (CPI) – the most common benchmark of inflation.
Caitlyn Eastell, personal finance analyst at Moneyfacts, said: “Savers have been handed another welcome boost this month, with fixed savings rates continuing to climb and competition remaining incredibly strong across the market.”
There were some 2,642 savings deals, including ISAs, available to savers last month, with 1,894 of these options being non-ISA products – the highest number on record.
The average easy-access rate remained unchanged at 2.53% for the third month in a row, while the average notice rate rose to 3.42%.
For those willing to lock in their cash, the average one-year fixed rate has risen for six consecutive months and stands at 4.28%, the highest yield since September 2024.
Longer-term fixed rates rose for a seventh consecutive month, reaching 4.31%, the highest since January 2024. There were similar records for ISA rates.
“This continued upward movement is positive news for savers who are looking to secure a guaranteed return, particularly those who have been waiting to see if rates could climb even higher,” said Eastell. “It also means that savers who locked away their cash some time ago could now find significantly more competitive options available.”
On average, the interest on offer from fixed-rate products is being held steady for 43 days, up from 32 days, the first time since May that this has increased.
Eastell noted this could reflect the need for providers to counterbalance rising borrowing costs, which she said can “weigh on providers’ margins”.
“It’s crucial they can draw in sufficient funding to support other areas, such as lending,” she noted, which could make the longer shelf-life on these products a necessity, rather than an indication that they are comfortable holding onto competitive deals for longer.