Derin Clark

Derin Clark

Online Reporter
Published: 16/07/2019

Shawbrook launches table-topping one-year fixed rate ISA

Shawbrook Bank has increased the rate on its one-year fixed rate ISA to 1.62% on maturity, seeing it now sit joint-top of its respective chart. This follows recent increases from Cynergy Bank and Paragon Bank in the one-year fixed sector and could be an early start to an Autumn ISA season.   

Shawbrook Bank’s 1 Year Fixed Rate Cash ISA Bond Issue 33 requires a minimum deposit of £1,000 and allows further additions while the issue is open. Early access is also allowed but subject to 90 days’ loss of interest. Transfers in from cash and stocks and shares ISAs are permitted, while transfers out are allowed but again subject to the 90 days’ loss of interest. The ISA must be opened online but can then be managed by phone as well.

What other competitive one-year ISAs are available?

While this rate rise will see Shawbrook Bank take top position in the one-year fixed rate ISA chart, Cynergy Bank also has a leading rate with its Loyalty Fixed Rate Cash ISA. This ISA has a rate of 1.62%, but is only available to existing customers of six months or more. The minimum deposit is just £500 and, once the ISA is open, allows further additions from a minimum amount of £100, although a variable rate will be paid. Early access is also permitted but subject to 180 days’ loss of interest. This ISA also allows transfers in from cash and stocks and shares ISAs. It must be opened online but can then be managed in branch, by post and by phone as well.

Savers who are not currently a customer of Cynergy Bank can open its Fixed Rate Cash ISA, a one-year fixed rate ISA, which pays 1.61% on a £500 minimum deposit. This ISA has the same terms and conditions as its Loyalty Fixed Rate Cash ISA.

Another provider offering a rate towards the top of the table is Al Rayan Bank, with an expected profit rate of 1.61%. Fixed Term Deposit Cash ISA requires a £1,000 minimum deposit. This account allows further additions within 30 days of account opening, but withdrawals are not permitted. Transfers in from cash ISAs and stocks and shares ISAs are allowed. This ISA can be both opened and managed online, in branch, by post, by phone and via its mobile app.

Why chose a one-year fixed rate ISA?

Simply put, they currently pay better rates than notice or easy access ISA alternatives. The best one-year fixed ISA rate is 1.62%, whereas the best notice ISA (180 days’ notice) is at 1.51% from Buckinghamshire Building Society and the best easy access ISA open to all customers currently pays a rate of 1.44% from OakNorth.

If you’re happy to tie your money away for longer, then the leading rate on a two-year fixed ISA is currently 1.90% from State Bank of India. You can open this account with a deposit of £5,000 and early access is allowed, subject to 30 days’ notice on closure of the account. If the account is closed before the first anniversary then no interest is paid, if it is after this then there is 1% loss of interest.

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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