Best ISA & savings rates revealed as savers experience ‘worst six months in over a decade’

ISA and general savings accounts are at unprecedented lows at the moment. Coronavirus is continuing to impact the economy and the Bank of England have kept the base rate at a historic low since March, leaving the savings world with few options.


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Research from has revealed that fixed savings rates have fallen significantly over the past six months.

In fact, averaged rates have fallen by the largest proportion over the first half of any year since 2009, according to their analysis.

As July rolls around, detailed that the average rate for easy access accounts is 0.24 percent.

There are similarly low averaged rates for ISA account, as detailed below:

  • Easy access ISA – 0.37 percent
  • Notice ISA – 0.60 percent
  • One-year fixed ISA – 0.63 percent
  • Longer-term fixed ISA – 0.81 percent

Indeed, their analysis revealed that all of the aforementioned types of ISAs saw their averaged rates drop in the period from January 2020 to now.

Commenting on the findings, Rachel Springall, a Finance Expert at, said: “Savers will be in for a shock to find the first six months of 2020 have been the worst for rate cuts in over a decade.

“Indeed, all average rates have fallen between January and June this year, but the falls are the largest we have seen since 2009, after the financial crash.

“This demonstrates how much the market has been impacted by the Coronavirus pandemic and base rate cuts, and it will leave savers feeling frustrated and disappointed.”

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She went on to highlight where the best rates could be found should savers want to look elsewhere and some people may be surprised by who holds the top spot at the moment: “These rate cuts should be more than enough reason to give savers a push to switch their deal if they are getting a poor return on their hard-earned cash.

“Indeed, on an easy access account, savers could be earning as little as 0.01 percent, such as with NatWest, but the best rate on the market pays 1.15 percent from National Savings and Investments (NS&I) – on a £20,000 deposit, that is a difference in interest over 12 months of £228.

“If savers were looking to lock their cash away over the next 18 months, then the best deal comes from Bank of London and The Middle East (BLME), paying 1.15 percent as an expected profit rate, which is 0.44 percent more than the average rate today.”


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She went on to show where the best deals could also be found for ISA holders: “Those savers who utilise their ISA allowance may feel despondent, as average returns have fallen between 0.48 percent (easy access ISAs) and 0.56 percent (longer-term fixed ISAs) since the start of 2020.

“The top easy access ISA today comes from Al Rayan Bank, which pays 1.00 percent as an expected profit rate, 0.63 percent more than the average easy access ISA rate.

“Despite this, savers may not find a fixed rate ISA a promising choice, as fixed rates have plummeted on one and five-year ISAs by 0.52 percent and 0.56 percent respectively since the start of 2020.

If savers hunt down the top fixed ISA rate today, then they will find Shawbrook Bank at the top of the market, with its seven-year fixed ISA that pays 1.25 percent gross on its anniversary or 1.24 percent monthly.”

Ms Springall concluded with a worrying warning and she called on savers to take action, just in case the situation doesn’t improve.

She said: “It is imperative that savers act quickly to acquire the top rates on the market regardless of which type of savings account they choose, as there seems no end to the downward trend.

“Due to the uncertainties that the Coronavirus pandemic has instilled, it is more important than ever before for consumers to build up an emergency fund that they can dip in to should they run into any financial difficulties in the months to come.”

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