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Savings rates BREACH 5%, plus this week’s best accounts

Written by: Rebecca Goodman
Interest rates continue to climb in the fixed-term account space, with a new 18-month bond paying 5.01%.

It’s an online account from Hampshire Trust Bank (HTB) and pays 5.01% AER (5% gross) on a minimum deposit of £1, data from Savings Champion revealed.

It comes as savings rates on one-year accounts fell back slightly after hitting 5% for the first time since 2009 earlier this month.

The last time an account in the two-, three-, four-, or five-year fixed tables paid 5% or more was November 2022.

The best buy account in the one-year savings market is currently from Allica Bank with its 12 Month Fixed-Term Personal Savings Account (Issue 40), paying 5% AER/gross on a minimum investment of £10,000.

Meanwhile, the fixed-rate ISA market is also fiercely competitive with just 0.01% separating the top accounts.

Successive base rate rises from the Bank of England (BoE) have resulted in rate hikes by many savings providers. It now stands at 4.5% after 12 consecutive increases.

Here we look at the top-paying ISA accounts available this week, as listed by Moneyfacts.

The best easy access cash ISAs

Top of the savings charts this week is the Limited Access e-ISA and the Limited Access ISA from Yorkshire Building Society paying 3.60%. The accounts can be opened with £1 and interest is paid yearly. It allows withdrawals on one day per year based on the anniversary of account opening, plus closure at any time.

The only difference between the two are how they can be opened and managed, with the e-ISA only available via online channels, while the alternative ISA can be opened and managed in branch and by post.

The next best accounts are as follows:

  1. Chorley Building Society’s Easy Access Cash ISA (3 Withdrawals): Paying 3.55%, this account can be opened with £1 online, in branch or by post. It allows three withdrawals per year with any extra withdrawals resulting in lower interest on the remaining cash.
  2. Paragon Bank’s Triple Access Cash ISA – Issue 13: Paying 3.51% this account can be opened and managed online with a £1 deposit. Further withdrawals will result in a lower rate of interest.
  3. Cynergy Bank’s Online ISA (Issue 36): This ISA pays 3.50%, can be opened with £1, and interest is paid yearly. It’s an online account and you’ll need the Cynergy Bank Authenticator App or Digipass to open and manage your money.
  4. Shawbrook Bank’s Easy Access Cash ISA – Issue 24: Paying 3.45% this online account can be opened with £1,000. It can also be managed on the phone and interest can be paid monthly or on the anniversary of opening the account.

This week’s best fixed-rate cash ISAs

The best buy this week in the one-year charts comes from Shawbrook Bank with its 1 Year Fixed Rate Cash ISA Bond Issue 72 paying 4.32%. It can be opened online with £1,000 and interest can be paid monthly or on maturity of the bond.

The next-best accounts are as follows:

  1. Close Brothers Savings’ 1 Year Fixed Rate Cash ISA: Also paying 4.32%, this account is very similar to the best buy but you need a hefty £10,000 or more to open it.
  2. Newcastle BS’s 2 Year Fixed Rate ISA (Issue 87): Top of the two-year charts this account pays 4.40% AER and can be opened with £500. It can be opened in a branch or online and also managed in person or by post. There are no restrictions on further additions with this account.
  3. Close Brothers Savings’ 2 Year Fixed Rate Cash ISA: This also pays 4.40% but you’ll need £10,000 to open it and interest is paid on the anniversary of the account being opened.
  4. Shawbrook’s 2 Year Fixed Rate Cash ISA Bond Issue 71: Another account paying 4.40%, this can be opened with £1,000 online then also managed on the phone and interest is paid on the account’s anniversary.
  5. Virgin Money’s 3 Year Fixed Rate Cash E-ISA Issue 569: This tops the three-year charts paying 4.41%. It can be opened online with £1 and further additions can be made in the first 30 days. Interest is paid on the account’s anniversary.
  6. Gatehouse Bank’s 5 Year Fixed Term Woodland Cash ISA: This account remains top of the five-year chart paying 4.20% in expected profit. It requires a minimum £1,000 to open online and it can also be managed via the bank’s mobile app.

This week’s best notice accounts

The Aldermore 30 Day Notice Account is in the top spot this week with an AER of 3.20%. 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 can only be opened and managed online.

The second best goes to the Furness BS’s 45 Day Notice Cash ISA paying 3.55% 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.

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