The best ISA rates this week 03.06.21 | moneyfacts.co.uk

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Published: 03/06/2021

This week has seen plenty of activity in the ISA market, with several providers increasing rates and launching new ISAs to see some welcome competition return to the sector. The fixed rate sector in particular has seen some improvement with new market-leading rates across several terms, and although activity hasn’t been quite as intense in the variable rate sector, there are still some new faces in the charts. Yet that’s not to say that there weren’t some withdrawals and reductions, which continues to highlight the importance of acting fast if you want to make the most of the top rates currently available.


Savers should note that the rates below are the best rates available at 16:30pm on Thursday 3 June 2021 and, although correct at the time of publishing, providers may reduce or withdraw rates at any time. As well as this, the rates highlighted are only those available to new customers.

An alternative to a cash ISA

An alternative to a cash ISA could be a stocks and shares ISA, which offers the same tax-free allowance, although savers should be aware these are a much riskier option and are normally only suited to long-term investors. More information about this type of investment can be found on our stocks and shares ISA page.

The best fixed rate ISA savings rates

Provider

Account

Notice

Rate AER

 

Shawbrook Bank

7 Year Fixed Rate Cash ISA Bond Issue 3

Seven years

1.25%

Find out more

UBL UK

5 Year Fixed Rate Cash ISA

Five years

1.21%

Find out more

UBL UK

3 Year Fixed Rate Cash ISA

Three years

0.96%

Find out more

Shawbrook Bank

2 Year Fixed Rate Cash ISA Bond Issue 47

Two years

0.70%

Find out more

Shawbrook Bank

1 Year Fixed Rate Cash ISA Bond Issue 47

One year
 

0.55%
 

Find out more
 

Shawbrook Bank continues to top the fixed rate ISA chart overall this week with its 7 Year Fixed Rate Cash ISA Bond Issue 3 paying 1.25% gross on its anniversary. This ISA requires a £1,000 minimum deposit, with transfers in accepted and further additions permitted while the issue remains open. It also allows earlier access subject to 360 days’ loss of interest. The ISA must be opened online but it can then be managed by phone as well, and there’s a version that pays interest monthly at a slightly lower gross rate of 1.24%. 
This week sees UBL UK topping both the five and three-year fixed rate ISA charts, overtaking last week’s leader thanks to a significant rate boost. Its 5 Year Fixed Rate Cash ISA pays 1.21% gross and its 3 Year Fixed Rate Cash ISA pays 0.96% gross. Both ISAs pay interest either on their anniversary, quarterly, monthly or on maturity – in the case of the three-year option, the on-maturity interest rate is 0.97% gross, while for the five-year version, the on-maturity rate is 1.24% gross and the quarterly and monthly interest rates are a slightly lesser 1.20% gross – and require a £2,000 minimum deposit to open, with transfers in welcome. Further additions are not permitted but earlier access is, subject to account closure and a 365-day loss of interest penalty on the five-year ISA and a 270-day loss on the three-year. These ISAs can be opened in branch, by post or by smartphone app, and can then be managed in the same ways as well as online and by phone.
Shawbrook Bank leads the way in both the two and one-year ISA sectors, with 2 Year Fixed Rate Cash ISA Bond Issue 47 paying 0.70% gross on its anniversary and 1 Year Fixed Rate Cash ISA Bond Issue 47 paying 0.55% gross, again on its anniversary. Both accounts require a minimum opening deposit of £1,000 and accept transfers in, together with further additions while the issue remains open. Earlier access is also permitted, subject to 90 days’ loss of interest on the one-year ISA and 180-days’ loss on the two-year. The ISAs must be opened online but can then be managed online and by phone, and versions of both accounts that pay interest monthly at the same rate are also available.  

Compare the best fixed rate ISAs

The best easy access rates

Provider

Account

Notice

Rate AER

 

Cynergy Bank

Online ISA (Issue 12)

None

0.46%

Find out more

Charter Savings Bank

 

Yorkshire Building Society

Easy Access Cash ISA – Issue 21

 

Annual Access Account ISA Issue 4

None

 

 

Instant

0.45%

 

 

0.45%

Find out more

 

 

Find out more

Cynergy Bank remains at the top of the easy access ISA chart this week paying 0.46% gross yearly on its Online ISA (Issue 12), which requires a £1 minimum deposit to open. Savers should be aware that a Cynergy Bank Authenticator App or Digipass is needed to open the account, which allows further additions and withdrawals. Transfers in are only accepted on account opening and are accepted from cash ISAs only. The ISA must be opened and managed online. 
Two accounts pay the second-best easy access ISA rate, with Charter Savings Bank’s Easy Access Cash ISA – Issue 21 and Yorkshire Building Society’s Annual Access Account ISA Issue 4 both paying 0.45% gross. Charter’s internet-operated account pays interest either on its anniversary or on a monthly basis, and requires a minimum opening investment of £5,000. Transfers in are accepted, as are further additions via a nominated account, and withdrawals are similarly permitted on a penalty-free basis.
Meanwhile, Yorkshire Building Society’s ISA pays interest on its anniversary and requires a £100 minimum deposit to open, which must be new money to the building society. Transfers in are accepted and it allows further additions, but withdrawals are restricted to one withdrawal day per anniversary year. Savers should note that this ISA reverts to an Easy ISA after 12 months. It can be opened in branch or by post and then managed online, in branch and by post. This ISA also has the benefit of flexible ISA status, allowing money to be withdrawn and replaced in the same tax year without it counting any further towards your annual ISA allowance.

Compare the best easy access ISAs

The best notice ISA rates

Provider

Account

Notice

Rate AER

 

Aldermore

30 Day Notice Cash ISA Issue 12

30 days

0.35%

Find out more

Buckinghamshire Building Society

30 Day Cash ISA

30 days

0.30%

Find out more

 

Aldermore continues to offer the top-paying notice ISA, with its 30 Day Notice Cash ISA Issue 12 paying 0.35% gross on its anniversary from a £1,000 minimum opening deposit. It allows further additions and transfers in, and withdrawals can be made subject to 30 days’ notice or the equivalent loss of interest. The ISA must be opened and managed online, and there is a version that pays interest monthly at the same gross rate. This ISA also has the benefit of flexible ISA status, allowing money to be withdrawn and replaced in the same tax year without it counting any further towards your annual ISA allowance.
The next-best ISA rate that is available to new customers comes from Buckinghamshire Building Society, with its 30 Day Cash ISA paying 0.30% gross yearly. It requires a minimum opening deposit of £100 and allows further additions, though transfers in are not accepted. Withdrawals are permitted subject to 30 days’ notice, and earlier access is allowed on the loss of 30 days’ interest. The ISA can be opened and managed in branch and by post, and a version of the account that pays interest monthly at the same gross rate is also available.

Compare the best notice ISAs

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. Links to third parties on this page are paid for by the third party. You can find out more about the individual products by visiting their site. Moneyfacts.co.uk will receive a small payment if you use their services after you click through to their site. All information is subject to change without notice. Please check all terms before making any decisions. This information is intended solely to provide guidance and is not financial advice. Moneyfacts will not be liable for any loss arising from your use or reliance on this information. If you are in any doubt, Moneyfacts recommends you obtain independent financial advice.

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