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This week’s best cash ISA accounts

This week’s best cash ISA accounts
Matt Browning
Written By:
Matt Browning

Virgin Money and Zopa have re-entered the ring for savers looking for competitive rates on their cash ISA accounts this week.

For the second year running, cash savings accounts outgrew the equivalent amount returned on stocks and shares.

Despite there being a drop in average cash ISA rates, plenty of leading providers are offering good value for savers’ investments.

Here are the best on the market, according to data from Moneyfacts.

Easy-access accounts

Moneybox Cash ISA is still the leading rate with its 5.09% AER, which contains a bonus (0.94%) for the first 12 months from account opening. Interest is paid on anniversary for this account.

This app-only deal needs at least £500 in the pot, while a rate of 0.75% AER hits the account when more than three withdrawals are made in a year.

Zopa’s Smart ISA – Access ISA stays in second place with its app-only account. It boasts a rate of 5.08% AER and a deposit of £1. To access the deal, customers need to open a Smart Saver account through the Smart Saving Hub.

Virgin Money enters the easy-access market in third place with its 5.06% AER deal paid yearly or monthly, which needs just £1 to open. The Defined Access Cash E-ISA Issue 25 can be opened online and up to three withdrawals, any more than that leads to a 2% AER reduced rate.

Fixed rate bonds

Keeping the top spot is Virgin Money’s 1 Year Fixed Rate Cash ISA Exclusive Issue 10, which stands at 5.25% AER. This is exclusive to current customers with a Clydesdale Bank, Yorkshire Bank, or B current account.

The account is also available for new or existing Virgin Money customers from 4 December 2019. A 60-day loss of interest for early access is part of the package, but further deposits are permitted. Customers receive profit on the account’s maturity on 31 January 2025 and interest is compounded in the interim period.

Zopa retakes the gold medal for two-year fix, with its Smart ISA – 2 Year Fixed Term ISA Pot. The account pays 4.67% AER monthly and requires only £1 to start.

Customers need a Smart Saver account through the Smart Savings Hub on the Zopa app to secure the offer, and further additions are allowed for 30 by a nominated account.

Early access is available but the account will be closed and hit with a 180-day loss of interest penalty.

Hodge Bank replaced UBL for the market-leading three-year fix this week, paying a 4.36% AER either monthly or annually. A deposit of £1,000 is needed to open the account, and savers can add funds within the first 10 working days of its opening. Early access comes with 270 days’ loss of interest.

However, the Sharia-compliant bank UBL remains the best provider for five-year fixes. Its 5 Year Fixed Rate Cash ISA offers 4.16% AER, but £2,000 is needed to open the account.

The account can be opened in a branch, by post, using the app, or on the phone and pays interest on a range of time frames, whether it is monthly, quarterly, on maturity, or anniversary.

However, early access to your funds means the account will be closed, plus a loss of interest worth 365 days.

Notice accounts

There’s no change in the notice account charts this week. Aldermore’s 30 Day Notice Cash ISA Issue 12 remains the top rate at 4.5% AER for a shorter notice period. Interest is paid either monthly or on anniversary, and a deposit of £1,000 is needed to secure the deal, but additional funds are accepted with no penalties too.

As is the case with 30-day notice accounts, if you wish to access your funds early, there’ll be 30 days’ loss of interest applied.

Much like last week, West Brom Building Society’s WeBSave 60 Day Notice ISA (Issue 2) is the best rate (5.06%) for 60-day notice accounts.

The online-only account pays interest monthly or yearly, while only £1 is needed to open the account. More cash can be added free of charge, but early access is met with a loss of interest worth 60 days.