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New two-year ISA paying 4.10% plus this week’s top savings rates

Rebecca Goodman
Written By:
Rebecca Goodman

The top pick for cash ISAs this week is a two-year fixed rate account from Castle Trust Bank and pays 4.10% AER.

Yet it is beaten by Virgin Money’s one-year cash ISA, paying 4.25% and its two-year cash ISA, paying 4.11%, although there are restrictions over who can access these accounts.

Virgin Money also tops the tables for easy-access ISAs but all of these are only available to new and existing Virgin Money current account holders from 4 December 2019.

For those people who may need access to their money and don’t want to lock it away for a year or longer, but still want the tax benefits of an ISA, there are a few notice accounts to keep an eye on too.

With these you can put your money away for a shorter period but still earn interest on it, tax-free up to the ISA allowance.

Here we look at some of this week’s top savings picks from Moneyfacts and the accounts it puts top when it comes to cash ISAs.

This week’s best easy-access cash ISAs

Virgin Money tops the table this week with its Easy Access Cash ISA Exclusive Issue 2. The account pays interest yearly and there’s no minimum deposit required to open it.

But it’s only available to new and existing Virgin Money current account holders from 4 December 2019. The exception to this rule is any Virgin Money customers who originally opened a Clydesdale Bank, Yorkshire Bank or B current account.

You can apply in a branch or online but it can also be managed via the post, phone, or the bank’s mobile app.

Other top easy-access cash ISAs picked by Moneyfacts include:

  1. Cynergy Bank Online ISA (Issue 29): Paying 2.85% AER, this ISA can be opened with £1 and pays interest annually. You’ll need to download the Digipass or Cynergy Bank Authenticator App to open or manage the account online. This ISA also requires a nominated account to access your funds.
  2. Shawbrook Bank Easy Access Cash ISA – Issue 22: You can choose for interest to be paid monthly or annually with this ISA which pays 2.77% AER. The minimum deposit is £1,000 and it can be managed online or via the telephone.

This week’s best fixed-rate cash ISAs

You’ll usually get a better rate of interest if you can put your money away for longer and Virgin Money continues to dominate the best buy tables for fixed-rate accounts.

The Virgin Money 1 Year Fixed Rate Cash ISA Exclusive Issue 4 is one of the best fixed-rate accounts on the market, according to Moneyfacts. It pays 4.25% and doesn’t require a minimum opening deposit. It also allows further additions to your funds while the issue remains open and within 30 days of the issue closing.

Early access will result in a 60-day loss of interest penalty while your rate is paid on maturity. It needs to be opened online or in a branch but can also be managed by post.

The next-best accounts are as follows:

  1. Virgin Money 2 Year Fixed Rate Cash E-ISA Issue 550: Paying 4.11%, interest can be paid monthly or yearly with this ISA. The minimum deposit is £1 and further additions are allowed for 30 days from account opening. Early access to this internet-operated account will result in a 90-day loss of interest.
  2. Gatehouse Bank Woodland Cash ISA: Topping the three and five-year charts, this Shari’ah-compliant provider will plant a tree in a UK woodland for every Woodland Cash ISA opened and funded. Both accounts pay an expected profit rate of 4.20%, either monthly or on the anniversary of opening the account. Minimum deposits start at £1,000 while further additions are not allowed. There is a 270-day loss of profit penalty for early access of the three-year account, while the five year option will enforce a 365-day loss of profit. Both accounts must be opened online and managed online or via mobile app.

This week’s best notice accounts

The Aldermore 30 Day Notice Account remains in the top spot this week with an AER of 2.80%.

It has a minimum opening deposit of £1,000 with interest paid away or compounded monthly or on anniversary. Withdrawals are subject to a 30-day notice period, or funds can be accessed earlier subject to a 30-day loss of interest. It only be opened and managed online.

The second best goes to the Furness BS’s 45 Day Notice Cash ISA paying 3.00% AER. It has a minimum deposit of £1,000 and you need to open this one in a branch or by post. It can also be managed over the phone once opened.

The Moneyfacts best savings account of the week

This week MoneyFacts picks out three top savings accounts. The first is from Castle Trust Bank paying 4.10% with its 2 Year Fixed Rate e-Cash ISA. Interest is paid on maturity and it allows earlier access, but this is subject to account closure and a loss of interest penalty. There is also the option to make further additions and transfers for 14 days from account opening.

The second is the Easy Access – Issue 32 account from Shawbrook Bank which pays 2.82%. This account allows both withdrawals and further additions at any time and the option to take the interest earned on a monthly basis.

Lastly, a 120-day notice ISA from Loughborough Building Society is chosen which pays 3.05% AER. Withdrawals are allowed, subject to 120 days’ notice or, alternatively, earlier access is permitted but subject to a 120-day loss of interest penalty.