As interest rates for fixed bonds fall, cash Isas are showing signs of resilience, according to the latest report by Moneyfacts.
Rachel Springall, finance expert at Moneyfacts said there was an "interesting split" in how providers adjust interest rates ahead of the Bank of England's 0.25 per cent cut at the start of August.
Moneyfacts UK Savings Trends Treasury Report showed between July and August the average easy access rate rose to 3.14 per cent from 3.11 per cent.
The average easy access Isa rate rose month-on-month to 3.36 per cent from 3.32 per cent, the highest it had been since April.
While the average one-year fixed bond rate fell to 4.63 per cent from 4.65 per cent.
Springall said: "One area of the savings market to show resilience between the start of July and the start of August was cash Isas, with both the average one- and longer-term fixed rates refusing to move in the same direction as their fixed rate bond counterparts."
She added cash Isas are ideal for savers worried about breaching their personal savings allowance.
"It will be interesting to see how both the average rates and overall product availability will be impacted by the base rate cut in the coming months," said Sprigall.
"This would be a great opportunity for savers to review their accounts and switch if they feel they are not being rewarded for their loyalty.
"Savings providers will need to work hard to ensure they are offering their customers a fair deal and act quickly to adjust their market position against their peers.”
tara.o'connor@ft.com
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