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Six of the best variable rate cash ISAs

Written by: Paloma Kubiak
Savers have a brand new ISA allowance of £20,000. If you don’t want to lock away your money, here are six of the top-paying variable rate ISAs.

Variable rate ISAs offer savers flexibility as your money’s not tied into a fixed rate deal but the deals can give you the chance to access your cash without penalty.

While there are some variable savings accounts that ask you to give notice before you withdraw your money, others offer instant access.

Here are six of the best variable rate cash ISAs according to Moneyfacts:

Coventry Building Society’s Easy Access ISA pays 1.05% AER (Annual Equivalent Rate)

This account takes the top spot in Moneyfacts’ tables as it’s an entirely restriction-free account that offers the “height of flexibility” – unlimited withdrawals and further additions are permitted, as are penalty-free transfers away from the account. The minimum investment is just £1 and it can be managed via all key channels, too.

Royal Bank of Scotland Instant Access ISA pays 1.05% AER

In second place is this deal from Royal Bank of Scotland, an instant access account that pays a headline rate of 1.05% to those who deposit the full 2017/18 ISA allowance. However, this includes a conditional bonus of 1.00% which is only paid if the full £20,000 allowance is deposited by 5 May 2017, so Moneyfacts said it may not be suited to those with less than this to invest. If savers have less than £20,000, they’ll only earn 0.05%.

Natwest cash ISA pays 1.01% AER

In third place is Natwest’s easy access ISA which pays a conditional bonus provided the full 2017/18 ISA allowance is deposited, otherwise it pays a very lowly 0.01%.

Skipton Building Society Online Bonus Cash ISA (Issue 8) pays 1.00% AER

Moneyfacts said this is a simple, straightforward online account offering plenty of flexibility, with unlimited withdrawals and further additions permitted without notice or restriction. Transfers in will also be permitted after the first 12 months. It has a minimum deposit of just £1, and with a variable rate of 1.00% (including a 0.35% bonus), it comfortably makes the charts in fourth place.

NS&I Direct ISA pays 1.00% AER

This no notice deal from NS&I makes the top five, and Moneyfacts said it’s the perfect choice for those who want the security of government-backing. It offers unlimited withdrawals and further additions, as well as penalty-free transfers away from the account. Savers need just £1 to open the account.

Al Rayan Bank 60 Day Notice Cash ISA pays an expected 1.00% AER

Al Rayan Bank is a Sharia-compliant bank which pays an indicative profit rate of 1.00% AER to those willing to give 60 days’ notice to access their funds. This account accepts further additions at any time and permits unlimited withdrawals as long as the notice is given.

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