According to financial data website Moneyfacts, savers could choose from 2,289 deals last month, the highest number since records began in February 2007. The choice of cash ISAs also hit a new peak of 662 products, while the number of savings providers rose to a record 155.

Despite this unprecedented choice, the returns on offer are struggling to keep pace. Only 26% of savings accounts pay more than the current Bank of England base rate of 4%. This coincides with a general decline in interest rates across the market. The average savings rate fell to 3.46% in September, down from 4.29% a year prior.

Key market segments saw notable decreases. The average easy-access rate dropped to 2.59%, while the average one-year fixed bond rate fell to 3.96%, both marking their lowest levels since mid-2023.

Rachel Springall, a finance expert at Moneyfacts, noted the challenge for savers. “With a base rate cut in August, the proportion of accounts beating the rate only improved slightly to one in four,” she explained.

The situation is compounded by rising inflation, with the Consumer Prices Index (CPI) reaching 3.8% in the 12 months to July. This means many savers are seeing the real-term value of their money eroded. Ms Springall advised that those seeking a guaranteed return might be wise to lock into a fixed-rate product, highlighting that the record choice in cash ISAs offers some positive news for diligent savers.