The average easy access Isa rate in April is 0.38 percent – up from 0.30 percent in March.
The 0.08 percent increase is the biggest monthly rise for this type of account since April 2012.
The average easy-access cash Isa rate is the best it has been since June 2020, when it was 0.45 per cent, according to Moneyfacts.
Rachel Springall, finance expert at the website, said: “After a lengthy absence, Isa season is back… with the market seeing the highest uplift in average rates month on month in a decade.”
“Those savers who are comparing deals to utilise their 2022-23 allowance will find much better rates on average compared to a month ago.”
She added: “Encouragingly, competition and the recent back-to-back Bank of England base rate rises are elevating interest rates across the savings spectrum. The rate war that has raged within the top rate tables for both fixed bonds and Isas month on month will be positive news for savers who want to lock their cash away for a higher return than they could receive on a variable rate.”
The average one-year fixed Isa recorded the biggest month-on-month rate increase since August 2011, rising to 0.87 percent, its highest since May 2020 when it was 0.91 percent.
Fixed Isa rates, with terms of more than 550 days, have also jumped. The average is now 1.30 percent, up from 1.12 percent in March.
It marked the biggest month-on-month rise since July 2008 and the highest average rate for this type of account since February 2020, when it was 1.34 percent.
The analysis was based on someone having a £5,000 savings deposit.
The period around March and April is often known as “Isa season” as providers compete to attract customers with their best rates.
But in recent years competition has been lacklustre.
Ms Springall added: “In the months to come, providers may well improve rates further. We are already seeing competition return to this sector from challenger banks, some of which are paying one percent or more.”
The choice of Isa has also increased with 112 more deals than a year ago.
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