Rate set to be cut on Virgin Money easy access ISA

Virgin Money is set to cut the rate on its closed easy access E-ISA Issue 14 from 1.31% to 1.01% on 2 June.

Savers wanting to beat the new Virgin Money rate on an easy access ISA can currently do so by transferring to Al Rayan Bank’s Instant Access Cash ISA, which pays an expected profit rate of 1.10% gross. This ISA pays profit monthly and requires a minimum deposit of £50 to open. It can be both opened and managed online, in branch, by post, by phone and via mobile app.

Alternatively, savers happy to switch to an easy access savings account will find they have more choice, as eight accounts in this chart currently beat 1.01%. Savers should be aware that if they do this, they will lose the tax-free status offered by ISAs so should ensure any interest earned will fall within their Personal Savings Allowance. For those concerned about paying tax on their savings, read our How are my savings taxed guide for more information.

National Savings & Investment currently pays the top easy access rate with its Income Bonds paying 1.15% gross. Interest is paid monthly and a minimum deposit of £500 is needed to open the account. It can be both opened and managed online, by post and by phone. As well as this, the account is 100% backed by HM Treasury.

For those looking for an account that does not require an opening minimum deposit, Marcus by Goldman Sachs® offers the highest paying rate. Its Online Savings Account pays 1.04% gross, which is paid monthly. To open this account, UK mobile number is required. It must be opened online, but can then be managed online and by phone.

As the accounts above highlight, savers with a closed easy access account should keep informed about any rate changes, as switching from a closed account to one that is still available in the charts could result in earning a higher interest rate. In fact, research we carried out earlier this month found that savers could almost double the interest they earned simply by switching from a closed easy access account.

Rachel Springall, finance expert at Moneyfacts.co.uk, said: “It is vital that savers keep a close eye on their existing interest rates while also comparing what is out there in the wider market. It has been almost three months now since the Bank of England cut bank base rate to an all-time low of 0.10%, so more likely than not, savers may have found their existing variable rate has indeed fallen or is about to be cut. If savers are looking to move their cash out of their ISA, they would be wise to transfer it to another one so that it does not lose its tax-free status.”