Average rates on fixed bonds and individual savings accounts have fallen month-on-month across the board for the first time since late 2021.
According to Moneyfacts, rates on one-year and longer-term fixed ISAs and bonds fell between October and November, marking the first time all have receded together in 21 months.
Average one-year fixed bond rates slipped from 5.42% to 5.36% over the period, Moneyfacts said, while those on longer-term fixes declined from 5.11% to 5.02%.
Rates on one-year and longer-term fixed ISAs fell from 5.27% to 5.20% and 5.02% to 4.92% respectively, meanwhile.
This comes after the Bank of England opted to hold base interest at 5.25% in its last two rate calls on the back of subsiding inflation, which sat at 4.6% in October.
Moneyfacts finance expert Rachel Springall dubbed the fall in rates as “disappointing for savers,” as the best deals seem to disappear on sentiment that UK interest has peaked.
“There are expectations for interest rates to drop in the months ahead, so fixed savings rates could fall further before the year is over,” she said.
Some savings rates did indeed rise as banks looked to bring deals in line with expectations for peak interest, with Moneyfacts noting increases in average easy access and notice account rates.
However, these remain well below the base rate, with easy access rates having climbed 0.02% to 3.18% and average interest on notice accounts climbing 0.09% to 4.24%.