Five of the best variable rate ISAs - ISAs - News - Moneyfacts

News

Five of the best variable rate ISAs

Five of the best variable rate ISAs

Category: ISAs

Updated: 13/03/2014
First Published: 13/03/2014

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

With the ISA season so far being lacklustre, savers everywhere are looking for ways to maximise their money. There's still time to make the most of your tax-free allowance and it's a great time to prepare for the new tax year as well, and although fixed rate bonds tend to be highlighted for producing the best returns they're not ideal for those that want access to their money. Well, what about variable rates?

A variable rate cash ISA will usually offer a lot more flexibility than its fixed rate counterpart, and it can still generate a decent return – if you know where to look. With that in mind, we've put together the top five variable rate ISAs to help you get the most from your hard-earned savings.

Top 5 variable cash ISAs:


AER

Details

Hanley Economic BS
Hanley Economic BS
Cash ISA – 60 Day Notice

1.85% AER

  • £100 minimum investment
  • Transfers in and further additions allowed
  • Withdrawals and transfers out permitted subject to 60 days' notice or loss
  • Account can be managed in branch or by post
Penny says…

"Easily taking the top spot in the variable sector is Hanley Economic, with its 60 day notice account paying a market-leading 1.85% on a minimum investment of £100.

"Savers can benefit from the flexibility of further additions and transfers in of previous ISA savings, as well as early access to funds, with transfers out and withdrawals both permitted subject to 60 days' notice or loss of interest."


AER

Details

Islamic Bank of Britain
Islamic Bank of Britain
Sharia'a compliant Notice Cash ISA

1.81% AER

  • Indicative profit rate of 1.81%
  • £250 minimum deposit
  • Transfers in and further additions allowed
  • Withdrawals and transfers out permitted subject to 120 days' notice or loss
  • Account can be opened and operated in branch, by post, by telephone or online
  • Interest is paid monthly and must be compounded
Penny says…

"Second place goes to this deal from Islamic Bank of Britain, paying an indicative profit rate of 1.81% AER on a minimum investment of £250.

"The flexibility of being able to make further additions adds to the appeal, as does the option of withdrawals and transfers out, as long as you're willing to give 120 days' notice – customers that can't wait that long will lose out on the same amount of interest."


AER

Details

Earl Shilton
Earl Shilton
90 Day Cash ISA

1.80% AER

  • £10 minimum deposit
  • Withdrawals and transfers out permitted on 90 days' notice or loss
  • Further additions are allowed but transfers in are not
  • Account can be opened and operated by branch or post

Penny says…
"Making the top three is this deal from Earl Shilton, paying 1.80% yearly on a minimum investment of just £10. Transfers in are not accepted so the maximum amount that can be deposited in the current tax year is £5,760.

"A benefit of this account is the level of flexibility, with further additions, withdrawals and transfers all being allowed, but to access your cash you'll need to give 90 days' notice or lose the same amount of interest."


AER

Details

Principality BS
Principality BS
Principality Promise ISA Issue 4

1.80% AER

  • £500 minimum deposit
  • Transfers in and further additions allowed
  • Two withdrawals allowed per annum subject to 30 days' notice or loss
  • Transfers out allowed subject to same terms
  • Account must be opened in branch and then managed via branch or post

Penny says…
"Next up is this deal from Principality BS, again an account that pays 1.80% yearly, which just missed out on third place because of its higher deposit requirement.

"This product welcomes further additions and transfers in while transfers out and withdrawals require 30 days' notice or loss of interest. Savers should also note that only two withdrawals are allowed per year – any more will result in a lower rate being paid."


AER

Details

Stafford Railway BS
Stafford
Railway BS
Cash ISA

1.75% AER

  • £1 minimum deposit
  • Tiered rates of interest depending on balance
  • Instant access account
  • Further additions, transfers out and withdrawals allowed
  • Account can be opened and operated in branch or by post

Penny says…
"Just making the top five is Stafford Railway BS's cash ISA, paying 1.75% yearly on a minimum investment of just £1 for those in the local area. A definite plus of the account is that higher rates of interest will be paid on higher balances, rising to 2.50% if you manage to build up £40,000 or more.

"Adding to the appeal is the flexibility. This instant access account allows withdrawals and transfers out at any time, without any notice required or loss of interest penalty. Further additions are welcome too, although it isn't possible to transfer in the current year's ISA subscriptions."


Information & Rates correct as at: 12.03.2014

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

Related Articles

All ISA rates fall below 1.00%

It can’t be denied that the ISA sector has had a tough time of late, and it's taken a significant toll, with our latest figures showing that all average ISA rates have fallen below 1.00% for the first time on record.

Top 6 inflation-beating cash ISAs

Inflation took an unexpected dip in October, official figures have revealed, with the measure of CPI standing at 0.9% (down from 1% in September).

6 of the best variable cash ISAs

The announcement of a flexible ISA came as welcome news this week: soon, savers will be able to withdraw cash and put it back in later...
 
Close