ISA Rate Increases Spark Hope For Savers | moneyfacts.co.uk

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James Blower

Head of Digital
Published: 14/01/2022

With just over 11 weeks to go until the end of the 2021/22 tax year, a battle for position at the top of the Moneyfacts best buy tables has triggered hope for savers of a better ISA season.

United Trust Bank moved first with chart-topping 3 and 5 Year Fixed Rates, paying 1.40% and 1.75% respectively, kicking off the New Year.

Aldermore was quick to respond, launching the highest paying 1 Year Fixed Rate ISA paying 0.95%, as well as topping the 2 Year Fixed ISA chart at 1.20% and launching a very competitive 3 Year Fixed rate at 1.35%.

The moves sparked action from Close Brothers Savings, which increased rates on its 1 Year Fixed Rate ISA to 0.90%, 3 Year to 1.30% and 5 Year to 1.65% earlier this week. Similarly, Hodge Bank nudged up its rates to 0.93% for 1 Year, 1.17% for 2 Year and 1.60% for 5 Year.

Newcastle Building Society’s 67th Issue of its 2 Year Fixed Rate ISA launched with a best buy rate of 1.30% to knock Aldermore from pole position.

James Blower, Head of Digital at Moneyfacts.co.uk, said: “It’s great to kick off 2022 with a flurry of competition from established providers at the top of the ISA best buy tables. It’s been several years since we saw a fight for ISA savers’ money and these movements bring hope that there may be an ISA season for savers.”

“With the influx of new entrant banks fighting for fixed rate bond savings, we are seeing established banks and challengers looking at attracting ISA savers as an alternative and cheaper way to fund their deposit books. This is great news for those seeking to use their ISA allowance ahead of the tax year end on 5 April.”

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