Savers looking to put their money into a tax-free ISA had a disappointing year with the spring ISA season not producing any headline grabbing rates, while the smaller autumn season stayed subdued. Eagle-eyed savers were, however, able to spot a few highly competitive ISA rates available throughout the year.
The biggest ISA news this year was the ending of Help to Buy ISAs on 30 November, which resulted in Lifetime ISAs now being the only option for first-time buyers wanting to save into an account that offers a 25% Government bonus. While the spring ISA season did not produce any remarkable rates, in March we reported that savers were expected to deposit up to £4bn into ISAs in the week leading up to the new tax year, while in May research from Moneyfacts.co.uk found that not only had the number of ISA products risen but consumer demand for cash ISAs was also on the rise. There was good news for ISA savers in November when we reported that banks and building societies were on target to meet the industry’s transfer deadline goal.
Overall the best fixed ISA rate this year came from United Trust Bank, which paid 2.50% on its ISA 7 Year Bond on an opening minimum deposit of £15,000. The five year fixed ISA chart produced the second best rate of 2019, with Shawbrook Bank paying 2.30% on its 5 Year Fixed Rate Cash ISA Bond Issue 16, which required a £1,000 minimum deposit. State Bank of India offered the highest three year fixed rate this year when its 3 Year Cash ISA Fixed Deposit paid 2.05% on a £5,000 deposit. Charter Savings Bank had the highest rate in the two year fixed ISA chart this year when its 2 Year Fixed Rate Cash ISA – Issue 30 paid 1.95% on a £5,000 deposit. The overall highest rate in the one year ISA chart during 2019 came from Kent Reliance which paid 1.80% on its Cash ISA 1 Year Fixed Rate – Issue 30 on a £1,000 deposit.
With this year’s political and economic uncertainty, many savers were preferring saving options that allowed them to easily access their money. Instant ISAs offered these savers the best option as they allow quick access to their tax-free savings. The highest rate during 2019 in the instant access ISA chart (with and without bonus) came from Virgin Money, which paid 1.50% on its Double Take E-ISA and Man Utd Double Take E-ISA, both on a minimum opening deposit of £1.
Notice ISAs are normally not as popular with savers than fixed and instant access ISAs, but there were still some competitive rates available in this chart during the year. The highest rate in 2019 in the notice ISA chart was 1.50%, which was available on Buckinghamshire Building Society’s 180 Day Cash ISA and which required a £100 deposit to open.
None of the highest fixed ISA rates are still available in the charts. Savers looking for the current top fixed ISA rate will be able to get 2.03% on UBL UK’s 5 Year Fixed ISA, which requires a £2,000 minimum opening deposit. For savers looking for a seven year ISA, United Trust Bank currently offers the highest rate of 2.00% on its ISA 7 Year Bond, which requires a £15,000 deposit to open. Metro Bank jointly tops the three year ISA chart today with its 3 Year Fixed Rate Cash ISA paying 1.70% on a minimum opening deposit of £1, while its 2 Year Fixed Rate Cash ISA tops the two year chart paying 1.60%. The current highest rate available in the one year ISA chart comes from Charter Savings Bank, which pays 1.41% on its 1 Year Fixed Rate Cash ISA on a £5,000 opening deposit.
Savers looking to deposit their money into an instant access ISA will find Al Rayan Bank currently offering the best rate in the chart with its expected profit rate of 1.36%. This ISA requires an opening minimum deposit of £50.
The notice ISA chart is slightly less competitive than the instant access ISA chart at the moment with the top rate offering savers 1.30%. This rate is available on Mansfield Building Society’s 180 Day Notice Cash ISA and requires a minimum opening deposit of £1.
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.