Rates of interest on Individual Savings Accounts (ISAs) are becoming more competitive in the lead up to the new tax year, according to Moneyfacts.

The comparison site’s figures have revealed best buy ISAs now offer rates in excess of 6.30%, much higher than last year’s maximum rates of 6.05%. Banks and building societies such as Barclays, Scarborough Building Society and Abbey are currently offering rates of 6.31%, 6.30% and 6.25% respectively. With the exception of Barclays, customers with ISAs elsewhere can transfer their balances into a new account and start earning more interest.

Rachel Thrussell, head of savings at Moneyfacts, said: “The rush for a slice of the tax-free market is really heating up now, with 42% of mini-cash ISA products being amended since the beginning of February and 80% since the beginning of January.

“Last year’s best buys were dominated by rates up to a maximum of 6.05%. However, in what has become a far more competitive environment this year, all the best buy rates are paying 6.10% and above.”