Derin Clark

Derin Clark

Online Reporter
Published: 13/09/2019

August saw a lot of ISA providers reduce rates on their products or withdraw them entirely. Saying this, it wasn’t the worst month for savers looking to open an ISA, with several well-known banks and building societies launching new products and rates. Savers wanting to get the top rates had to act quickly though, as new products could quickly be withdrawn or have their rates reduced – this happened towards the end of August when within a week of Charter Savings Bank launching its chart-topping 1 Year Fixed Rate Cash ISA the product was withdrawn.

Some products that were launched in August are still available, these are:

  • Nationwide Building Society’s 3 Year Fixed Rate ISA, which pays 1.00% on a £1 deposit. This ISA has a three-year term during which further additions are not allowed, while earlier access is only permitted on closure and subject to 270 days’ loss of interest. Transfers in are accepted, while transfers out are allowed subject to 270 days’ loss of interest. This ISA can be both opened and managed online, in branch and via its mobile app.
  • Cambridge Building Society’s 1 Year Fixed Rate ISA (Issue 25) pays 1.40% on a one-year term and 5 Year Fixed Rate ISA (Issue 11) pays 1.85% on a five-year term. Both these ISAs require a £500 deposit and allow further additions during the 2019/20 tax year only. Earlier access on the one-year version is permitted on 120 days’ loss of interest, while on the five-year version earlier access is subject to 240 days’ loss of interest. The building society also launched a Member’s 2 Year Fixed Rate ISA (Issue 1) that pays 1.55% on a two-year term, however this ISA is restricted to existing members only. It has the same terms and conditions as the fixed rate ISAs, with earlier access being subject to 180 days’ loss of interest. All these ISAs allow transfers in until the 5 April 2020, while transfers out on the one-year incur a 120 days’ loss of interest penalty, the two-year and five-year versions have 180 days’ and 240 days’ loss of interest penalty respectively. These ISAs can be opened in branch, by post or phone and then managed online, in branch, by post, by phone and via its mobile app.
  • Nottingham Building Society’s Fixed Rate ISA – Issue 45 pays 1.15% until 30 November 2020, its Fixed Rate ISA – Issue 46 pays 1.25% until 30 November 2021 and its Fixed Rate ISA – Issue 47 pays 1.35% until 30 November 2022. All these ISAs require a £500 deposit and allow further additions while the issues remain open, but earlier access is only allowed on transfers only and are subject to 180 days’ loss of interest. Transfers in are allowed while the issues remain open. These ISAs can only be opened and managed in branch.
  • Principality Building Society’s 5 Year Fixed Rate Cash ISA Issue 213 pays 1.90% on a £500 deposit. This ISA has a five-year term that allows further additions while the issue remains open, but earlier access is only permitted on closure and subject to 360 days’ loss of interest. Transfers in are allowed, while transfers out are subject to a 360 days’ loss of interest penalty. It must be opened online or in branch but can then be managed by post as well.

While all these ISA were launched during August, none offer a top rate in their respective charts. The top rates currently on offer are:

  • Metro Bank is paying 2.10% on its 5 Year Fixed Rate Cash ISA (Issue 7), which is the top rate in the five year fixed rate ISA chart. The bank is also offering the top rate without any opening restrictions in the three year fixed rate ISA chart with its 3 Year Fixed Rate Cash ISA (Issue 7) paying 1.85%. Both ISAs require a deposit of just £1 and allow further deposits within 30 days of account opening, while earlier access is allowed on closure only and subject to 180 days’ loss of interest. They allow transfers in within 30 days of account opening, while transfers out have the penalty of 180 days’ loss of interest. The ISAs can be only opened in branch but then managed online and by phone as well.
  • Al Rayan Bank tops the two year fixed rate ISA chart with its Fixed Term Deposit Cash ISA paying an expected profit rate of 1.81%. This ISA requires a £1,000 deposit and allows further additions within 30 days of account opening, but earlier access is not permitted. Transfers in are accepted for up to 30 days from account opening, while transfers out have the penalty of reduced profit rate for up to 90 days. It can be both opened and managed online, in branch, by post, by phone and via its mobile app.
  • Cynergy Bank’s Fixed Rate Cash ISA tops the one-year fixed rate ISA chart paying 1.63% on a £500 deposit. This ISA allows further additions but a variable rate will be paid, while earlier access is subject to 180 days’ loss of interest. Transfers in are allowed, while transfers out have a 180 days’ loss of interest penalty This ISA can only be opened online, but then managed in branch, by post and by phone as well.
  • Charter Savings Bank and Coventry Building Society both offer the top rate of 1.44% within the easy access ISA chart. Charter Savings Bank pays this rate on its Easy Access Cash ISA – Issue 12, which is an online-only account that requires a £5,000 deposit. This ISA allows further additions and withdrawals, as well as accepting transfers in. Coventry Building Society pays this rate, which includes a 0.29% bonus until 31 January 2021, on its Limited Access ISA. requires a £1 deposit and allows further additions but withdrawals are restricted to three penalty-free withdrawals per annum, while further withdrawals are subject to 50 days’ loss of interest. Transfers in are accepted, but all transferred in funds (with the exception of cash ISAs) must be sent by cheque with transfer history form. It can be opened and managed online, in branch, by post and phone.

 

All rates are correct at time of publishing.

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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