Save, make, understand money


This week’s top ISA rates

This week’s top ISA rates
Matt Browning
Written By:
Matt Browning

Much like many Christmas trees and decorations, rates on this week's top ISA accounts haven't all come down just yet, so there’s little change at the top of the fixed term, easy-access and notice tables.

This means Metro Bank, Virgin Money and Aldermore continue to lead the rest of the pack of savings’ providers.

But, with base rate cuts from the Monetary Policy Committee (MPC) on the horizon for 2024, it’s important to grab the best buys before rates are hit with reductions.

Here are the top deals of the week, according to data from Moneyfacts.

Easy-access ISAs

Just as it was before Christmas, Metro Bank remains the leading provider for savers looking for an easy-access ISA. Its 5.11% AER flexible Instant Access Cash ISA can only be opened in branch, but can later be managed online, by phone or using the app. The deal includes an introductory bonus (3.46%) for the first 12 months once £500 is in the account. The funds must be added within 28 days of the account opening. Transfers are permitted within 30 days of account opening and withdrawals come without limitations.

Keeping second place in the easy-access market is Moneybox’s Cash ISA, priced at 5.09% AER which is paid on anniversary with a £500 threshold. This deal also has a bonus – worth 0.94% for 12 months – but is solely managed using the provider’s app. Three withdrawals are allowed in a year but then a reduced rate of 0.75% is applied.

In third position is Zopa’s 5.08% AER deal on its Smart ISA – Access ISA which can be opened with just £1. A Smart Saver account through the Smart Savings Hub (available using the app) is required. Withdrawals can be completed through a nominated account but transfers in from alternative ISAs are not permitted.

Fixed-rate bonds

Just as the end of 2023, Virgin Money tops the chart in the fixed-rate bonds market. The 1 Year Fixed Rate Cash ISA Exclusive Issue 10 offers 5.25% AER on maturity and is available exclusively to new and existing account holders from 4 December 2019. Alternatively, this is an option for customers who opened a Clydesdale Bank, Yorkshire Bank or B current account. An account can be set up online or in branch, by post, phone or the mobile app and additional payments can be made but early withdrawals come with a 60-day interest loss.

In the two-year market Hinckley & Rugby Building Society’s 30 Month Fixed Rate Cash ISA – Issue 6 boasts the best rate on the market at 5.00% AER. Customers require £500 in funds to get started on the account which can be opened and managed in a branch or by post. No further additions are accepted and savers who wish to withdraw early may wish to reconsider, for a 180 days’ loss of interest will be incurred if so.

Topping the three-year fix table is Sharia Law bank UBL UK. Its three-year fixed ISA is priced at 4.65% AER and can be opened online, in a branch, by post or in the app. You’ll need a bigger deposit than other providers on this week’s list, with a £2,000 investment needed to open the account. Also, it’s worth noting no additional contributions can be made either and early access is only allowed on closing the account but is subject to a 270-day loss of interest.

The five-year alternative from the provider has the same terms, but a different rate of 4.50% AER and a 365-day interest penalty for early withdrawals.

Notice ISA accounts

With a 4.50% AER deal on its 30 Day Notice Cash ISA Issue 12, Aldermore reigns supreme once again for savers. To open the account, you’ll need £1,000 and further additions are allowed whenever you like. Early access comes with a loss of 30 days’ interest.

Another mainstay in the notice market is Harpenden Building Society. For slightly longer withdrawal period, perhaps consider the mutual’s 45 Days’ Notice ISA Account (Issue 1). There are no provisions on early withdrawals and like Aldermore’s offer – £1,000 is needed to open the account. Savers can make more payments if they choose and there are no penalties on early withdrawals.

For customers open to giving longer notice to their provider before taking out their funds, Furness Building Society has a 5.01% AER to offer on its 90 Day Notice Cash ISA (Issue 1). The account can be opened in one of its branches or by mail and a £1,000 deposit is needed. Early access with this new top-three entry comes with a 90-day interest penalty.