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This week’s top ISA rates

This week’s top ISA rates
Matt Browning
Written By:
Matt Browning
Posted:
21/12/2023
Updated:
21/12/2023

The final round-up of the top ISA rates this year sees Metro Bank, Virgin Money and Aldermore leading the pack.

Sharia-compliant accounts also remain an appealing option for three and five-year fixed rates with prices below 4.90%.

But as the case has been in recent times, the usual providers dominate the best notice account rates.

Using data from Moneyfacts, here are the best of the week as 2023 draws to a close.

Easy-access ISAs

Metro Bank ends the year as the leading easy-access provider. The Instant Access Cash ISA stands at 5.11% AER and a bonus (3.46%) for 12 months is applicable if a balance of £500 is reached within 28 days of opening.

Savers need to head to a branch to get going, but after that, transactions can go ahead using a phone, going online, or using the app. There’s no limit on withdrawals and transfers can also be permitted within 30 days of the account opening.

Moneybox’s Cash ISA is the second best option, paying 5.09% AER at £500 and also includes a bonus (0.94%) for 12 months. However, a 0.75% rate will be applied if more than three withdrawals are made in 12 months. There is a slight restriction for customers, as the account can only be opened using the providers’ app.

In third place is Zopa’s Smart ISA – Access ISA fund, which offers a 5.08% AER to customers and only £1 is needed to commence the saving. A Smart Saver via the Smart Savings Hub is necessary to be eligible for this offer. Withdrawals are permitted through a nominated account and transfers cannot be made from other ISAs.

Fixed-rate bonds

Virgin Money’s 1 Year Fixed Rate Cash ISA Exclusive Issue 9 leads the fixed rate market paying 5.50% AER but is only available to new and existing customers from 4 December 2019. This also applies to Clydesdale Bank, Yorkshire Bank or B current account holders. Savers can open the account in a branch or online but it can be managed by post, phone or on the app. Additions are accepted but early access comes with 60 days’ loss of interest.

In the two-year market, the leading rates (5.01% AER) are shared by Secure Trust and Metro Bank.

Secure Trust Bank’s 2 Year Fixed Rate Cash ISA (19 Jan 26) tops the charts. A minimum of £1,000 deposit is needed to get started and a further £1,000 can be transferred in for 30 days from the day of account is opened.

Metro Bank’s alternative 2 Year Fixed Rate Cash ISA can be opened in a branch and managed online or by phone. Additions are accepted for a spell of 30 days once you open the account.

For three and five-year fixes, Sharia-compliant bank UBL is the best around this week. The Fixed Rate Cash ISA for the shorter term pays 4.87% AER and the longer term is 4.81% AER.

Both accounts can be opened using a range of methods and at least £2,000 has to be deposited once the account is opened but no additions are allowed. Early access is permitted on the closure of the account but is subject to an interest loss worth 270 (three-year) and 365 days (five-year).

Notice ISA accounts

The Aldermore 30-Day Notice Cash ISA Issue 12 is priced at 4.50% AER and requires a minimum deposit of £1,000 while also needing to be opened and managed online. Early access is subject to a loss of interest worth 30 days.

Harpenden Building Society 45 Days’ Notice ISA Account (Issue 1) is priced at 4.55% AER and customers require a deposit of at least £1,000 to begin saving. The account can be managed either online, in a branch or post and early access is prohibited.