Moneyfacts UK Savings Trends Treasury Report data shows cash ISA choice felt its biggest monthly dip since January 2024 as speculation persists over a cut to the ISA allowance.
The £20,000 cash ISA allowance shields interest from tax, however, cutting the allowance to £12,000 would have significant consequences – both from a retail funding perspective and consumer uptake. Almost £30bn has been deposited in cash ISAs since the start of April, according to the Bank of England.
Cash ISAs remain popular, as our survey revealed less than a third (23%) of consumers keep their savings stashed in a stocks and shares ISA, compared to 44% in a cash ISA*.
The choice of cash ISAs fell to 640 deals from 658, its biggest monthly fall since January 2024, down from the record high in September 2025 (662). The number of savings providers overall remains a record high of 156. Product choice overall fell month-on-month to 2,313 savings deals (including ISAs).
The average easy access ISA rate fell to 2.69%, its lowest level since July 2023 (2.54%). The average notice ISA rate fell to 3.41%, last lower in September 2025 (3.37%).
The average one-year fixed ISA rate remained at 3.89%, its lowest level since May 2023 (3.80%) and the longer-term fixed ISA rate fell to 3.82%, last as low in July 2025 (3.82%).
The average easy access rate rose to 2.51%, up from 2.49% a month prior. The average notice rate fell to 3.46%, its lowest level since July 2023 (3.43%).
The average one-year fixed bond rate fell to 3.95%, now at its lowest since May 2023 (3.93%) and the longer-term fixed bond rate fell to 3.88%, now at its lowest since March 2023 (3.86%).
The Moneyfacts Average Savings Rate fell to 3.42%, down from 3.44% month-on-month. It is down from 3.71% since November 2024, and lower than 4.35% in November 2023. The rate was last above 4% in January 2024 (4.04%).
Rachel Springall, Finance Expert at Moneyfacts, said:
“Cash ISAs are under threat, with rumours persisting of a cut to the £20,000 yearly allowance, a futile attempt to push risk-averse savers to invest. This year has been a milestone for cash ISAs, with the choice of deals and number of providers in this sector reaching record highs. Savers have flocked to cash ISAs to shield their money from tax, no doubt boosted by worries over a cut to the yearly allowance, with the Bank of England showing almost £30bn of deposits made since the start of April. However, despite the strong start to the new tax-year, the choice of cash ISAs felt its biggest monthly fall since January 2024, and the average easy access ISA and one-year fixed ISA rates are now at their lowest levels in two years.
“Savers find comfort in cash ISAs, particularly those who are being hit by fiscal drag and do not want to risk their pot in a stocks and shares ISA. Indeed, investing the full £20,000 in a one-year fixed cash ISA paying 3.89% would earn £778 in interest after 12 months, which is completely shielded from tax. However, if the same amount was invested in a one-year bond at 3.95%, earning £790, higher-rate taxpayers would breach their yearly Personal Savings Allowance (PSA) of £500, which is half that of the £1,000 limit granted to basic-rate taxpayers.
“If the cash ISA allowance gets cut down to £12,000, not only will it cause chaos from a retail funding perspective, but it will give savers less reason to use a cash ISA in the first place. Maxing out a yearly limit of £12,000 will earn less than £500 in interest based on the current average returns of a one-year cash ISA or fixed bond, currently below 4%, which is within the PSA for both a higher-rate and basic-rate taxpayer. Therefore, unless the PSA is abolished, savers who chase top rate returns would take home more interest outside of a cash ISA and there will be a greater argument for investing in a stocks and shares ISA.
“Interest rates are expected to come down further, and many economists predict another cut to the Bank of England base rate in December. However, when it comes to fixed rates, these are more in tune with swap rates, so providers will be monitoring movements very closely, while also managing their deposit funding targets. Taking time to review and switch any savings account will be essential over the coming months, as will be maximising the use of any tax-free allowances.”
*Survey of 2,000 nationally representative UK adults carried out by OnePoll on behalf of Moneyfacts between 1 – 3 September 2025. Savings index data and analysis can be found here.
| Savings market analysis – average rates | |||||
| Nov-23 | Nov-24 | May-25 | Oct-25 | Nov-25 | |
| Average easy access rate | 3.18% | 3.03% | 2.78% | 2.49% | 2.51% |
| Average easy access ISA rate | 3.29% | 3.24% | 3.02% | 2.72% | 2.69% |
| Average notice rate | 4.24% | 4.20% | 3.78% | 3.50% | 3.46% |
| Average notice ISA rate | 4.09% | 4.05% | 3.71% | 3.43% | 3.41% |
| Average one-year fixed rate bond | 5.36% | 4.24% | 4.11% | 3.98% | 3.95% |
| Average longer-term fixed rate bond* | 5.02% | 3.89% | 3.94% | 3.91% | 3.88% |
| Average one-year fixed rate ISA | 5.20% | 4.06% | 4.02% | 3.89% | 3.89% |
| Average longer-term fixed rate ISA* | 4.92% | 3.84% | 3.87% | 3.84% | 3.82% |
| *Longer-term fixed bonds or ISAs are those with terms over 550 days. Average interest rates based on a £5,000 deposit as at the start of the month. | |||||
| Source: Moneyfacts Treasury Reports. | |||||
| Moneyfacts Average Savings Rate | |||||
| Nov-23 | Nov-24 | May-25 | Oct-25 | Nov-25 | |
| Moneyfacts Average Savings Rate | 4.35% | 3.71% | 3.59% | 3.44% | 3.42% |
| Calculated from the total of all on-sale, core market, variable and fixed rate savings accounts and Cash ISAs. Standard exclusions apply: Regular savings, children’s accounts, LISAs and JISAs. | |||||
| Source: Moneyfacts Average Savings Rate. | |||||
| Savings market analysis – product count | |||||
| Nov-23 | Nov-24 | May-25 | Oct-25 | Nov-25 | |
| Number of live savings account options (excluding ISAs) | 1,442 | 1,517 | 1,572 | 1,666 | 1,673 |
| Number of live ISA options | 526 | 559 | 616 | 658 | 640 |
| Source: Moneyfacts Treasury Reports. | |||||
