Providers have continued to withdraw products or cut rates. However, others, including mutuals and challenger banks, have stepped up to take charge in the ISA market.
After several weeks at the top of the chart, Metro Bank is replaced by Moneybox in the easy access market, while Close Brothers Savings overtakes Melton Building Society for the best two-year fixes.
As the rate of inflation surprisingly jumped up to 4%, the need to make the most of your money is vital, especially in the midst of a cost-of-living crisis.
So, read on for this week’s top ISA rates, using data from Moneyfacts.
Easy access accounts
Moneybox finally reaches the summit of the easy access chart, with a rate of 5.09% AER, which contains a bonus (0.94%) for 12 months. Interest on the Moneybox Cash ISA is paid on anniversary and a deposit of £500 is needed to open this app-only account.
If you want to make any withdrawals, the provider permits three without any penalties within 12 months. But if you make any more, a lower rate of 0.75% AER will be added.
Taking Moneybox’s long-running second spot is Zopa’s 5.08% AER deal – complete with a bonus rate of 0.50% (until April 2025). The Smart ISA – Access ISA is one for mobile banking users, as that’s how you open this account – which can be done with just £1. You’ll need to open a Smart Saver account through the provider’s Smart Savings Hub. As well as the additional bonus included in the account, customers can now accept transfers in from other cash ISAs too.
Freshening up the top three is Charter Savings Bank with its online-only Easy Access Cash ISA – Issue 43, paying a rate of 5.07% AER. A larger deposit is needed, with £5,000 required to start saving and interest can either be paid monthly or on anniversary – whichever you prefer.
Fixed-rate bonds
Virgin Money again reigns supreme at the top of the fixed-rate bonds chart, offering 5.25% AER on the 1 Year Fixed Rate Cash ISA Exclusive Issue 10. There is no minimum deposit but you hve to be a new or existing current account customer since 4 December 2019. Alternatively, you could be a Clydesdale Bank, Yorkshire Bank or B Current account holder. Interest is paid on maturity but, given the fixed nature of the account, early access comes with 60 days’ loss of interest on the amount withdrawn.
For medium-range fixes, Close Brothers Savings’ 2 Year Fixed Rate Cash ISA and 3 Year Fixed Rate Cash ISA lead the way with a 4.75% AER and 4.50% AER deal respectively.
Both can only be opened online but they can be managed by post or over the phone. The accounts require a sizeable deposit of £10,000 and are perhaps ones to avoid if you want early access with a fixed term. This is because you’ll need to close your account for early access to your investment.
Following that, the two-year fix comes with a 150-day interest penalty, while the three-year equivalent comes with a penalty worth 270 days.
UBL UK has the best rate in the five-year fix chart thanks to its 5 Year Fixed Rate Cash ISA. The rate of 4.26% AER can be utilised once £2,000 is deposited into the account, which can be done online, in a branch, by post or using the app. Further deposits are prohibited and early withdrawals lead to the account being closed and a loss of a year’s worth of interest. But, savers can decide between having the interest paid on maturity, anniversary, quarterly or monthly.
Notice ISA accounts
As is often the case with the best notice accounts, Aldermore is the one to beat, with a 30 Day Notice Cash ISA Issue 12 price of 4.50% AER. This can be paid monthly or on the anniversary of your funds entering the account. To get going, £1,000 is initially required and you can add as many funds as you like. But withdrawals need 30 days’ notice and also come with a loss of interest worth the same length of time.
If you can spare a longer notice period, Harpenden Building Society pays 4.55% AER on the 45 Days’ Notice ISA Account (Issue 1). This requires a £1,000 deposit and is available to open in a branch, by mail, or online. Interest is paid yearly and to gain access to your pot, you’ll need to give 45 days’ notice to the mutual.
For less flexibility but a better rate, Furness Building Society offers 5.01% AER on its 90 Day Notice Cash ISA (Issue 1). Savers need a deposit of £1,000 and online banking is not an option, so a visit to the branch or post box is needed to open the account. To dip into your funds, you’ll need to let Furness know 90 days in advance, if not you’ll be hit with 90 days’ loss of interest.
