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This week’s best easy access, fixed and notice ISA rates

Your Money
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Your Money

Savers can earn up to 4.20% interest on a fixed-rate cash ISA – read about this week’s best ISA rates, according to Moneyfacts Compare.

Looking to lock away money for a longer stretch? Darlington Building Society is offering a new five-year fixed-rate cash ISA pays paying an annual equivalence rate (AER) of 4.20%, as does one offered by Gatehouse Bank.

Easy access ISAs

If you happen to be an education professional, Teachers BS has a Triple Access Cash ISA for Teachers (Issue 1). Its new rate is 3.20% AER, matching rates offered by Santander, Cynergy Bank and Paragon.

The Teachers BS ISA allows up to three penalty-free withdrawals per calendar year, a minimum £100 deposit, and a maximum investment of £250,000. Go over that number of withdrawals and the interest rate payable on the remaining balance for that calendar year will be 0.50%.  The deal also applies to retired teachers.

Paragon also allows three withdrawals from its Triple Access cash ISA, but on a fourth, the interest rate falls to 0.75%. Cynergy Bank’s Online ISA can be opened with a mere £1 and transfers-in are accepted at time of application, though you’ll need the bank’s Authenticator App or Digipass to use its online banking. Its investment limit is £20,000 for the tax year and unlimited withdrawals are allowed.

Santander’s requires a £500 minimum deposit to open online, in branch or via mobile app, and withdrawals are allowed. This pays interest yearly and allows transfers from a range of ISAs but after 12 months, it reverts to an ISA Saver account.

Offering a slightly lower rate is Shawbrook Bank’s Easy Access Cash ISA – Issue 23 at 3.17% AER paid monthly or on its  anniversary. It requires a minimum opening deposit of £1,000.

Finally, Gatehouse Bank’s Easy Access Cash ISA pays 3.15% AER. You can open it with just £1 and decide whether you want the interest paid monthly basis or on its anniversary.

Fixed-rate cash ISAs

One-year fixed

Santander has increased the rate on its One-Year Fixed Rate ISA to 4.15% AER with a minimum opening deposit of £500. Interest is paid yearly until maturity. Access it early and you’ll pay a penalty and the account will close. Yu can open this account online, in branch or via mobile app, with ongoing management done in branch or by phone.

Two-year fixed

Santander’s  Two-year Fixed Rate ISA now pays 4.20% AER with a minimum opening deposit of £500. Interest is paid yearly until maturity. Bust into this sooner and you’ll lose a 120 days of interest and the account will close.

Gatehouse Bank is also offering 4.20% AER with its Two-year Fixed Term Woodland Cash ISA, matching the rate on its three- and five-year fixed term accounts within the Woodland range. An opening deposit of £1,000 is required with interest paid either monthly or on anniversary. Gatehouse also promises to plant a tree for every Woodland Cash ISA that’s opened. You can access the money early, but you’ll pay a penalty.

Three and five-year fixed

Also at 4.20% AER is Close Brothers Savings. Its three-year fixed rate ISA requires £10,000 to start earning interest, paid on anniversary. Access it early will trigger a 270-day loss of interest and closure of the account.

Then we circle back to Darlington BS’s 5-Year Fixed Rate Cash ISA (53). It pays 4.20% AER on an annual basis and you need at least £10,000 to open one. Access your money earlier than five years and you’ll lose 120 days of interest and the account will close. If you live near a branch in the North East of England, you can open this ISA in a Darlington BS branch. Otherwise you’ll need to open and manage it via the post.

Notice ISA accounts

Aldermore offers the best rate for accounts that need 30 days or less notice, paying 2.80% AER. In order to open this flexible ISA, you will need a minimum deposit of £1,000. Meanwhile, to withdraw funds from the account, you are required to provide 30 days’ notice, otherwise you will be landed with a 30-day loss of interest penalty.

Similarly, Furness BS continues to top the table for accounts that require a notice period of 60 days or less. Its 45-day Notice Cash ISA, a flexible ISA, pays 3.30% AER on a yearly basis. After opening this account with a minimum of £1,000, to access your money you will need to provide 45 days’ notice, or you’ll lose 45 days’ interest.