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Top 6 long-term cash ISAs

Top 6 long-term cash ISAs

Category: ISAs

Updated: 24/03/2017
First Published: 24/03/2017

ISA season is in full swing, and happily, our latest research shows that things are looking far more promising this year than last, with long-term ISA rates in particular seeing a welcome uptick. It's great news for those seeking security and guaranteed returns over the longer term, particularly for those wanting to make the most of their ISA allowance before the end of the tax year (but they'll need to be quick about it!).

After all, ISAs continue to offer one of the best ways to secure decent returns, despite the Personal Savings Allowance (PSA) being in force, which allows up to £1,000 in interest to be earned tax-free each year regardless of where your savings are held. However, it's still worth investing in an ISA: your pot will remain tax-efficient no matter what happens to savings rates or PSA rules in future, and if you build up a healthy pot and earn more than £1,000 in interest, it becomes even more beneficial.

So, with that in mind, we've compiled a list of the top six fixed rate cash ISAs currently available. We've focused on longer-term accounts of at least three years as these are the ones that will offer the best returns on your money - you'll have to lock your cash away, but the returns could be worth it!

Top 6 long-term cash ISAs:


AER
Details

Paragon Bank
5 Year Fixed Rate Cash ISA
1.75% AER
  • Rate fixed for five years
  • £500 minimum investment
  • Transfers in of previous ISAs permitted
  • Further additions allowed for 15 days from account opening
  • Earlier access and transfers out subject to 365 days' loss of interest
  • Internet operated
  • Interest paid on anniversary

Taking the top spot is this five-year deal from Paragon Bank, paying a market-leading 1.75% from a minimum investment of £500. Transfers in are allowed, as are further additions for a limited period. Withdrawals are also possible, although it should be noted that this earlier access will result in the loss of 365 days' interest, the same penalty as applies to transfers away from this internet-operated account.


AER
Details

Coventry Building Society
Fixed Rate ISA (40)
31.5.22
1.70% AER
  • Rate fixed 31.05.22
  • Minimum investment of £1
  • Transfers in and further additions allowed for 14 days after account opening or while issue remains open, whichever is longer
  • Earlier access on closure and 180-day loss of interest
  • Account can be opened and operated in branch, by post, by phone and online
  • Interest paid yearly

In second place is this five-year deal from Coventry BS. It pays 1.70% yearly from an initial investment of just £1, although it permits both transfers in and further additions for a limited period. Earlier access to funds is also possible, but it should be noted that this will result in closure of the account and a 180-day loss of interest penalty.


AER
Details

Virgin Money
Virgin Fixed Rate Cash E-ISA Issue 226
1.65% AER
  • Rate fixed to 24.03.22
  • Minimum investment of £1
  • Transfers in permitted
  • Further additions for 30 days after account opening
  • Earlier access and transfers out on 180 days' loss of interest
  • Internet operated
  • Interest paid yearly

Virgin Money secures a top-three position with this five-year bond, an internet-operated deal that pays 1.65% AER from a minimum investment of just £1. It permits both transfers in and further additions, together with earlier access, although this is subject to a 180-day interest penalty. However, it thankfully doesn't ask you to close the account should you need to access your cash early.


AER
Details

United Bank UK
5 Year Fixed Rate Cash ISA
1.65% AER
  • Rate fixed for five years
  • £2,000 minimum investment
  • Transfers in of previous cash ISAs permitted
  • No further additions
  • Earlier access and transfers out subject to 365 days' loss of interest
  • Can be managed in branch and by post
  • Interest paid on anniversary

Next up is this five-year deal from United Trust Bank, paying 1.65% to those with a minimum of £2,000 to invest. Transfers in are allowed, provided they're from cash ISAs, but further additions are not. Withdrawals are possible from this branch and postal-operated account, albeit subject to the loss of 365 days' interest, the same penalty as applies to transfers away.


AER
Details


Leeds Building Society
5 Year Fixed Rate ISA (Issue 61)

1.60% AER
  • Rate fixed to 03.05.22
  • Minimum investment of £100
  • Transfers in permitted
  • Further additions allowed until 05.04.17 for the current tax year and until 12.05.17 for the 2017/18 tax year
  • Earlier access and transfers out on 365 days' loss of interest
  • Can be opened online, in branch or by post, before becoming post and branch-operated
  • Interest paid yearly (first interest payment 03.05.18)

Leeds BS secures a place in the top five with this deal that pays 1.60% AER from a minimum investment of £100. It permits both transfers in and further additions for a limited period - allowing savers to add funds in both this tax year and the next - together with earlier access. However, the latter is subject to a hefty 365-day loss of interest penalty, so the account will be best suited to those who are comfortable with a full five-year commitment.


AER
Details

Shawbrook Bank
5 Year Fixed Rate Cash ISA Bond Issue 6
1.60% AER
  • Rate fixed for five years
  • Minimum investment of £5,000
  • Transfers in of previous years' ISA savings permitted on account opening
  • Further additions allowed while issue remains open
  • Withdrawals and transfers out subject to 360 days' loss of interest
  • Must be opened online before becoming phone and internet-operated
  • Interest paid on anniversary

Shawbrook Bank just squeezes into the top six with a five-year ISA that pays 1.60% yearly to those with a minimum of £5,000 to invest. Transfers in are accepted, as are further additions for a limited period. Withdrawals are also permitted subject to a loss of interest penalty, with the same penalty applying to those who wish to transfer away from this phone and internet-operated account.

Information & rates correct as at: 23.03.2017

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.

 
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