Average easy access ISA rate reaches 3% for the first time in 15 years
Savers can now get an average of 3% on their cash ISAs – although the best buy accounts pay significantly more than this.
The last time the easy access cash ISA rate was higher than 3% was in December 2008, almost 15 years ago, according to Moneyfacts.
Average rates can give you an idea of whether you are getting competitive returns on your savings, as well as providing an overview of how the market is performing.
If average rates are rising, it may be worth reviewing your savings to ensure your provider is keeping up with market trends.
Consecutive increases to the Bank of England base rate are causing savings rates to climb steadily.
Best easy access ISA rates
The top spot for easy-access ISAs this week is taken by the Newcastle BS Newcastle Double Access ISA (Issue 1). It pays 4.50% interest on a minimum deposit of £1.
However, despite the account paying the highest rate of interest, there is a catch when it comes to withdrawals. If more than two withdrawals are made within a year, the interest rate will drop to 2.90%. The account can be opened online or in a branch, and also managed by post or phone.
Competitive rates can also be found from Shawbrook Bank and Cynergy Bank. The Easy Access Cash ISA – Issue 25 from Shawbrook Bank pays 4.43% AER, while Cynergy Bank’s Online ISA (Issue 40) offers a slightly lower rate of 4.40% AER.
The best one-year fixed rate ISA currently pays 5.77% and is from UBL UK.