The Best ISA Rate This Week 04.03.21 | moneyfacts.co.uk

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MONEYFACTS ARCHIVE. This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Derin Clark

Derin Clark

Online Reporter
Published: 04/03/2021

In yesterday’s budget, it was revealed that the tax-free ISA allowance for the 2021/22 tax year would remain at £20,000 and the Junior ISA tax-free allowance would also remain at its limit of £9,000 for the next tax year. With just weeks left until the new tax year, savers only have a short time left to use up their full 2020/21 tax-free ISA allowance and should look at taking advantage of the best ISA rates before the new tax year starts in April.

Savers should also note that the rates below are the best rates available at 1pm on Thursday 4 March 2021 and, although correct at the time of publishing, they may not be available after this time.

The best fixed rate ISA savings rates

Provider Account Term Rate AER
Shawbrook Bank 7 Year Fixed Rate Cash ISA Bond Issue 3 Seven years 1.25%

Gatehouse Bank

UBL UK

5 Year Fixed Term Green Cash ISA
5 Year Fixed Rate Cash ISA

Five years

Five years

1.15% (expected profit rate)
1.15%
Gatehouse Bank 3 Year Fixed Term Green Cash ISA Three years 0.80% (expected profit rate)
State Bank of India 2 Year Cash ISA Fixed Deposit Two years 0.65%
Cynergy Bank Loyalty Fixed Rate Cash ISA One year 0.55%

 

The top rate in the fixed rate ISA chart this week came from Shawbrook Bank, which pays 1.25% gross on anniversary on its 7 Year Fixed Rate Cash ISA Bond Issue 3. This ISA requires a £1,000 minimum deposit to open. Transfers in are accepted. It must be opened online but can then be managed online and by phone. There is also a version of this ISA that pays interest monthly at a slightly lower gross rate of 1.24%.

Two providers offered the best rate in the five year fixed rate ISA chart this week. Gatehouse Bank pays an expected profit rate of 1.15% gross anniversary on its 5 Year Fixed Term Green Cash ISA. To open this ISA, a £1,000 minimum deposit is needed. It accepts transfers in. The ISA benefits from Gatehouse Bank planting a tree in a UK woodland when an account is opened and funded, and the trees are planted in UK woodland projects certified by the UK Government’s Woodland Carbon Code. It must be opened and managed online. UBL UK’s 5 Year Fixed Rate Cash ISA pays 1.15% gross on anniversary and quarterly, as well as a slightly higher rate of 1.18% gross on maturity and a lower rate of 1.14% gross monthly. All options require a £2,000 minimum deposit to open. They accept transfers in from cash ISAs. These ISAs can be opened in branch or by post, but can then only be managed by post.

The top rate in the three year fixed rate ISA chart comes from Gatehouse Bank, which pays an expected profit rate of 0.80% gross on anniversary on its 3 Year Fixed Term Green Cash ISA. A minimum deposit of £1,000 is needed to open this ISA. Transfers in are accepted. The ISA has an incentive of Gatehouse Bank planting a tree in a UK woodland when an account is opened and funded, with the trees being planted in UK woodland projects certified by the UK Government’s Woodland Carbon Code. The ISA can only be opened and managed online.

Topping the two year fixed ISA chart this week was State Bank of India with its 2 Year Cash ISA Fixed Deposit paying 0.65% gross on maturity. This ISA requires a £5,000 minimum deposit to open, as well as a new current or savings account. It accepts transfers in from cash ISAs. The ISA can be both opened and managed online, in branch, and by post.

Cynergy Bank topped the one year fixed rate ISA chart this week paying 0.55% gross on anniversary on its Loyalty Fixed Rate Cash ISA, although savers should be aware that this ISA is only available to existing customers of six months or more. Eligible customers need a £500 minimum deposit to open this ISA, which also requires a Cynergy Bank Authenticator App or Digipass to use online banking. It accepts transfers in from cash ISAs and must be opened online, but can then be managed online, by post and by phone. Leeds Building Society, Tipton & Coseley Building Society and West Brom Building Society all offer ISAs with the next-best rate in the one year fixed ISA chart of 0.50% gross.

Compare the best fixed rate ISAs

The best easy access ISA rates

Provider Account Notice Rate AER
Al Rayan Bank Instant Access Cash ISA (Issue 2) Instant 0.60% (expected profit rate)
Virgin Money Easy Access Cash ISA Exclusive Issue 1 Instant 0.50%

 

The best easy access ISA rate this week was once again being offered by Al Rayan Bank, paying an expected profit rate of 0.60% gross monthly on its Instant Access Cash ISA (Issue 2). This ISA requires a £50 minimum deposit to open. It allows further additions and withdrawals. Transfers in are accepted. The ISA can be both opened and managed online, in branch, by post, by phone and via mobile app.

Virgin Money had the next-best rate of 0.50% gross yearly on its Easy Access Cash ISA Exclusive Issue 1. This ISA is available to new and existing Virgin Money, Clydesdale Bank or Yorkshire Bank current account customers from 4.12.19. It does not require a minimum deposit to open and allows further additions and withdrawals. Transfers in are accepted. The ISA can be opened online or in branch and then managed online, in branch, by post, by phone and via mobile app. Teachers Building Society also pays 0.50% gross yearly on its Teachers for Teachers Easy Access ISA (Issue 1), but this ISA is only available to teachers and other education professionals.

The third-best easy access ISA rate of 0.40% gross was offered by 11 providers this week, which were Paragon Bank, Charter Savings Bank, Leeds Building Society, Marsden Building Society, Progressive Building Society (which is only available to those in Northern Ireland), Shawbrook Bank, Stafford Railway Building Society, Teachers Building Society, Tipton & Coseley Building Society (which is only available to those within certain postcode areas), Vernon Building Society (which is only available to those within a 25-mile radius of Stockport), and Yorkshire Building Society.

More information about these ISAs can be found on our easy access ISA chart.

Compare the best easy access ISAs

The best notice ISA rates

Provider Account Notice Rate AER
Marsden Building Society Branch Cash ISA 95 (Issue 2) 95 days 0.55%
Tipton & Coseley Building Society 30 Day Notice ISA (Issue 2) 30 days 0.45%
Aldermore 30 Day Notice Cash ISA Issue 11 30 days 0.40%

 

Marsden Building Society continued to top the notice ISA chart this week with its Branch Cash ISA 95 (Issue 2). This ISA pays 0.55% gross on deposits at £5,000, as well as a higher rate of 0.65% gross on deposits of £25,000 and a lower rate of 0.45% gross on deposits of £1,000. Further additions are allowed. Withdrawals are permitted subject to 95 days’ notice and, if notice is not given, earlier access is permitted on closure only on 95 days’ loss of interest. Transfers in from cash ISAs are accepted. This ISA can only be opened and managed in branch.

The next-best notice ISA rate came from Tipton & Coseley Building Society, which pays 0.45% gross yearly on its 30 Day Notice ISA (Issue 2). This ISA is only available to those living within certain postcode areas and requires a £100 minimum deposit to open. Further additions are allowed via cash, cheque or standing order. Withdrawals can be made subject to 30 days’ notice and, if notice is not given, earlier access is permitted on 30 days’ loss of interest. It can be both opened and managed in branch and by post.

Aldermore had the next-best notice ISA rate with its 30 Day Notice Cash ISA Issue 11 paying 0.40% gross on anniversary. A £1,000 minimum deposit is needed to open this ISA, which allows further additions. Withdrawals can be made subject to 30 days’ notice or earlier access is permitted on 30 days’ loss of interest. The ISA accepts transfers in. It must be opened and managed online. There is also a version of this ISA that pays interest monthly at the same gross rate.

Compare the best notice ISAs

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