Virgin Money has increased the rate paid on its two-year fixed rate ISA, which has subsequently moved into a market-leading position thanks to its highly competitive terms.
The two-year Fixed Rate Cash E-ISA Issue 136 now pays 2.06% yearly (2.04% monthly) until 24.10.17, a market-leading rate in its sector.
As an E-ISA, this account must be opened and operated online with a minimum investment of just £1.
Additional deposits can be made for up to 30 days after the account has been opened, and transfers in of existing ISAs are also permitted. Unusually, early access is allowed subject to a penalty of 90 days' loss of interest. This penalty also applies to transfers out of the account.
For savers who would prefer not to manage their account online, a branch and postal-operated version (Issue 165) paying the same rate is available.
This ISA is now top of the leaderboard thanks to its latest rate increase, something that is sure to pique the interest of eager savers. The monthly interest option will appeal to those looking to secure a regular income, while the ability to make further additions and transfer in existing savings adds some welcome flexibility. Savers are also likely to be pleased by the option to access funds prior to maturity, although they must be aware that this carries an interest penalty.
Moneyfacts rating: Excellent
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