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This week's top ISA rates

This week's top ISA rates
Matt Browning
Written By:
Matt Browning

Most of the movement for the top ISA rates is happening in the fixed term bond market, as TSB and Close Brothers Savings enter the fray.

However, in the easy access and notice account sector – just like last week – the usual suspects continue to dominate the top of those charts.

With the year kicking off with declining rates for savers, it’s important to secure the best buys while on the market.

So, here are the leading providers for you to consider, according to data from Moneyfacts.

Easy access ISAs

Metro Bank continues to offer the leading price for savers wanting flexibility with their accounts. The Instant Cash ISA pays 5.11% AER with a bonus of 3.46% for the first 12 months. While no minimum amount is required to open the account, £500 must be deposited within 28 days for that bonus rate to be activated. Interest is paid yearly and transfers are allowed within 30 days of the account opening.

Further, there are unlimited withdrawals with no penalties and any withdrawn funds can be replaced without it counting towards your annual ISA allowance.

Moneybox also retains the second spot in this market with its Moneybox Cash ISA, priced at 5.09% AER, which is paid on anniversary and requires at least £500 in the pot to get started. This app-only offer has a smaller bonus (0.94%) than Metro’s leading deal and is also applied for the first 12 months of the account opening. There are penalties involved with this offer, as more than three withdrawals will see a reduced interest rate of 0.75% AER slapped on the account.

Completing the unchanged top three is Zopa’s 5.08% AER on its mobile exclusive Smart ISA – Access ISA Pot. You’ll need to open a Smart Saver account through the provider’s Smart Savings Hub to get the deal while perks include a small deposit (£1) and unlimited withdrawals. Additional deposits can be made with a nominated account.

Fixed-rate bonds

Virgin Money is leading the pack again with a 5.25% AER on the 1 Year Fixed Rate Cash ISA Exclusive Issue 10. This is available for new and existing customers from 4 December 2019, plus any customers who originally opened a Clydesdale Bank, Yorkshire Bank or B current account. This account has no minimum deposit and can be opened online or in a branch, while early access brings 60 days’ loss of interest.

The top provider for a two-year fix is Melton Building Society’s Fixed Rate Cash ISA to 21 January 2026. If you prefer banking online, this is perhaps one to avoid as it can only be opened and managed in branch. The deal is 4.95% AER and if you deposit the minimum £1,000 then withdrawals are prohibited. This account also incurs 150 days’ loss of interest on early access transfers but more funds can be added while the issue remains open.

After Sharia Law bank UBL UK dropped rates on its three-year fix, two new names are offering 4.50% AER that beat the rest this week.

TSB’s 3 Year Fixed Rate Cash ISA requires only a £1 deposit, which savers need to open online or in a branch. This can then be managed online or using the app and early access receives a loss of interest of 270 days. Further additions are permitted within 30 days of the account opening and interest is paid on anniversary.

The Close Brothers’s Savings 3 Year Fixed Rate Cash ISA is paid annually but this deal requires a much larger deposit  of £10,000. Further additions are permitted after 10 days from the account opening. Early access comes with the same level of interest loss as TSB and while transfers in are accepted, this can only happen within 10 days of the account opening.

While UBL UK dropped out of the top three-year options, it kept its position as the best longer-term choice with its 5 year fixed Rate Cash ISA. A minimum of £2,000 is needed to commence saving and the 4.26% AER is paid on anniversary, maturity or even on a quarterly or monthly basis. Early access comes with 365 days’ loss of interest and additional contributions are prohibited.

Notice ISA accounts

All of the best buys on the notice market come from the same providers as last week.

Aldermore’s 30 Day Notice Cash ISA Issue 12, priced at 4.50% AER requires a minimum deposit of £1,000 and unlimited further additions are allowed at any time. However, accessing your funds early will see a loss of 30 days’ interest.

Harpenden Building Society is a stalwart of leading notice accounts thanks to its 45 Days’ Notice ISA Account (Issue 1). This 4.55% AER deal also needs an initial investment of £1,000 and further payments are accepted. The mutual’s offer also includes no penalties for any withdrawals.

For the longest notice period, Furness Building Society has a 5.01% AER to offer on its 90 Day Notice Cash ISA (Issue 1). A £1,000 deposit is needed to open the account, which can be done in one of its branches or by post, but transactions can then be managed on the phone too. A 90-day interest penalty is added to access your investments early.