The highest paying one-year fixed rate cash Isa available on the market is with Shawbrook Bank, at 5.01pc, while the best easy access Isa is 5.09pc from Moneybox.
But average rates on one-year cash Isas have fallen since the savings peak in the Autumn of last year, following the Bank of England holding the Bank Rate in August.
January saw the largest drop in fixed savings rates in more than a decade, after inflation rose for the first time since February last year, to 4pc.
The average one-year fixed cash Isa available on Tuesday was 4.49pc, whereas the easy access Isa rate was sitting at 3.33pc.
But on November 24 last year, the one-year cash Isa rate was 5.06pc. The easy access rate, which has held steady, was 3.31pc.
Those with money in the highest performing sector, however, could have seen growth of more than 34pc. Technology and telecommunications saw the greatest improvements, while China and Greater China funds dropped by 32pc.
Rachel Springall, of Moneyfacts, said: “Cash Isa returns have now beaten stocks and shares Isa growth for the past two consecutive years. The savings market thrived during 2023, thanks to rising variable and fixed rates, and cash Isa rates received a boost.”
The financial commentator added that the new Isa rules which allow savers to subscribe to more than one Isa of each type every year, which will come in from April, could make stocks and shares Isas more attractive again.
She explained: “The new ISA rules coming into effect from the new tax-year could make these more desirable for savers who wish to subscribe to more than one ISA of each type per year.”
