After a disappointing 2019, savers will be hoping that the new year brings higher savings rates. Savers who do not want to risk rates falling further if they wait to open an ISA will be pleased to see that many of the top rates available before Christmas are still topping the ISA charts.
|UBL UK||5 Year Fixed Rate Cash ISA||Five years||2.03%|
|Aldermore||3 Year Fixed Rate Cash ISA||Three years||1.70%|
|Metro Bank||2 Year Fixed Rate Cash ISA (Issue 10)||Two years||1.60%|
|Charter Savings Bank||1 Year Fixed Rate Cash ISA||One year||1.41%|
The start of 2020 saw UBL UK remaining at the top of the fixed rate ISA chart with its 5 Year Fixed Rate Cash ISA. This ISA pays 2.11% gross on maturity on an opening minimum deposit of £2,000. It allows transfers in from cash ISAs only and can be opened in branch or by post before coming purely postal-operated. There are also versions of this ISA that pay interest on its anniversary, quarterly and monthly, all at a lower gross rate.
Aldermore continued to offer the highest three year fixed ISA rate with its 3 Year Fixed Rate Cash ISA paying 1.70% gross on its anniversary. An opening minimum deposit of £1,000 is required to open this ISA, which allows transfers in. Transfer forms must be received within 10 business days of opening. It can only be opened and managed online. There is also a version of this ISA that pays interest monthly at a slightly lower gross rate.
There was also no change at the top of the two year fixed ISA chart, with Metro Bank continuing to offer the highest rate of 1.60% gross. Metro Banks pays this rate on its 2 Year Fixed Rate Cash ISA (Issue 10), which pays interest yearly. This ISA requires a minimum deposit of just £1 to open. It allows transfers in but these must be made within 30 days of account opening. This ISA can only be opened in branch but can then be managed online, in branch and by phone.
Savers looking to open a short-term fixed ISA will find that Charter Savings Bank remained at the top of the one year chart with its 1 Year Fixed Rate Cash ISA. This ISA pays 1.41% gross on its anniversary and requires a minimum deposit of £5,000 to open. Transfers in are allowed with this ISA, which can only be opened and managed online.
|Al Rayan Bank||Instant Access Cash ISA||Instant||1.36% (expected profit rate)|
|Yorkshire Building Society||1 Year Limited Access Saver ISA Issue 2||None||1.35%|
|Cynergy Bank||Online ISA (Issue 1)||None||1.31%|
|Sainsbury’s Bank||Cash ISA||None||1.31%|
Savers wanting to start the new year by opening an easy access ISA will find that Al Rayan Bank continued to sit at the top of the chart. Al Rayan Bank pays an expected profit rate of 1.35% gross monthly on its Instant Access Cash ISA. A minimum deposit of £50 is required to open this ISA, which allows further additions and withdrawals. Transfers in are also allowed. This ISA can be both opened and managed online, in branch, by post, by phone and via its mobile app.
Yorkshire Building Society also pays 1.35% gross on its 1 Year Limited Access Saver ISA Issue 2. This ISA pays interest on its anniversary and requires a minimum opening deposit of £100. Both further additions and withdrawals are allowed, although withdrawals are restricted to one day per account year, while transfers in are also permitted. This ISA can only be opened and managed online.
Over the Christmas period, Family Building Society dropped out of the top of the easy access ISA chart, meaning that now Cynergy Bank is now in third place. Cynergy Bank pays 1.31% gross yearly on its Online ISA (Issue 1). This ISA requires a minimum opening deposit of just £1 and allows further additions and withdrawals. Transfers in are also permitted. This ISA must be both opened and managed online.
Sainsbury’s Bank’s Cash ISA also pays 1.31% gross on a deposit of £500, while a lower gross rate of 0.75% is paid on deposits under £500. This ISA allows both further additions and withdrawals, while transfers in are also allowed. It can be both opened and managed online and by phone.
|Teachers Building Society||Education ISA (Issue 1)||90 days||1.40%|
|Aldermore||30 Day notice Cash ISA Issue 7||30 days||1.30%|
There was no change at the top of the notice ISA chart over the Christmas period, with Teachers Building Society remaining at the top of the chart paying 1.40% gross. Teachers Building Society pays this rate yearly on its Education ISA (Issue 1), which is only available to teachers or other education professionals. This ISA requires an opening minimum deposit of £100 and allows unlimited further additions. Withdrawals are permitted subject to 90 days’ notice. Transfers in are also allowed. The ISA can be both opened and managed online and by post.
Aldermore continued to offer the best rate on a 30 day notice ISA with its 30 Day Notice Cash ISA Issue 7 paying 1.30% gross on its anniversary. A £1,000 minimum deposit is required to open this ISA, which allows unlimited further additions. Withdrawals are permitted subject to 30 days’ notice, but if notice is not given, early access is allowed on 30 days’ loss of interest. Transfers in are also permitted. This ISA can only be opened and managed online. There is also a version of this ISA that pays interest monthly at a slightly lower gross rate.
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