The Best ISA Rates This Week 06.05.21 | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 06/05/2021

Savers looking to open a new ISA will find that there has not been a lot of movement at the top of the ISA charts this week. As such, all of last week’s top rates have remained available this week. Despite this, savers are urged to act quickly to secure the top rates to avoid missing out.

Savers should note that the rates below are the best rates available at 1pm on Thursday 6 May 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, and as such there may be higher rates on ISAs available to existing customers only – to compare these ISAs, visit our ISA charts and, using the refine button, filter the results to show ISAs only available to existing customers.

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
Shawbrook Bank 5 Year Fixed Rate Cash ISA Bond Issue 25 Five years 1.10% Find out more
Shawbrook Bank 3 Year Fixed Rate Cash ISA Bond Issue 26 Three years 0.71% Find out more
State Bank of India 2 Year Cash ISA Fixed Deposit Two years 0.65% Find out more
Monmouthshire Building Society 1 Year Fixed Rate Cash ISA – Issue 13 One year 0.49% Find out more

 

Shawbrook Bank continued to dominate the fixed rate ISA charts this week, paying the top rate in the seven, five, and three-year fixed ISA charts. Its 7 Year Fixed Rate Cash ISA Bond Issue 3 pays 1.25% gross, while its 5 Year Fixed Rate Cash ISA Bond Issue 25 pays 1.10% gross and its 3 Year Fixed Rate Cash ISA Bond Issue 26 pays 0.71% gross. All these ISAs pay interest on anniversary and require a £1,000 minimum deposit to open. They allow earlier access subject to 270 days’ loss of interest on the three-year option or 360 days’ loss on the five and seven-year options. Transfers in are accepted. Transfers out are permitted and are subject to the same loss of interest penalties as earlier access. All ISAs must be opened online but can then be managed online and by phone. There are also versions of these ISAs that pay interest monthly at the same gross rate on the three-year option and at lower gross rates of 1.09% on the five-year option and 1.24% on the seven-year option.

The top rate in the two year fixed ISA chart this week came from State Bank of India, which pays 0.65% gross on maturity on its 2 Year Cash ISA Fixed Deposit. This ISA requires a £5,000 minimum deposit to open, along with a State Bank of India current or savings account. Earlier access is allowed on closure only and subject to 30 days’ notice. No interest is paid if the account is closed before the first anniversary, and there is a 1% loss of interest penalty if the ISA is closed after the first anniversary. Transfers in from cash ISAs are accepted. Transfers out are permitted subject to the same conditions as earlier access. This ISA can be both opened and managed online, in branch and by post.

Monmouthshire Building Society topped the one year fixed ISA chart this week, paying 0.49% gross on maturity on its 1 Year Fixed Rate Cash ISA – Issue 13. To open this ISA, a £3,000 minimum deposit is needed and savers should be aware that it is only available to those living in England and Wales. Earlier access is permitted on closure only and subject to 90 days’ loss of interest. Transfers in from cash ISAs are accepted. Transfers out are allowed subject to the same loss of interest penalty as earlier access. It must be opened in branch but can then be managed online, in branch and by post.

Compare the best fixed rate ISAs

The best easy access ISA rates

Provider Account Notice Rate AER  
Kent Reliance Cash ISA - Easy Access - Issue 28 Instant 0.45% Find out more
Yorkshire Building Society Annual Access Account ISA Issue 4 Instant 0.45% Find out more
Paragon Bank Limited Edition Easy Access ISA (Issue 6) None 0.41% Go to provider’s site

 

Both Kent Reliance and Yorkshire Building Society continued to pay the highest easy access ISA rate on accounts open to new customers. Kent Reliance pays 0.45% gross yearly on its Cash ISA – Easy Access – Issue 28. This ISA requires a £1,000 minimum deposit to open. It allows further additions via cash at branch, cheque, bank transfer or debit card. Withdrawals can be made but the method is dependent on how the account is opened. Transfers in are accepted but transfer requests must be made within 30 days of account opening. The ISA can be opened online, in branch or by post and then managed online, in branch, by post and by phone. There is also a version of this ISA that pays interest monthly at the same gross rate.

Also paying 0.45% gross this week was Yorkshire Building Society, which pays this rate on its Annual Access Account ISA Issue 4. This ISA pays interest on anniversary and requires a £100 minimum deposit to open and the money must be new to the building society. Further additions can be made. Withdrawals are restricted to one withdrawal day per account year. Transfers in are accepted. This ISA can be opened in branch or by post and then managed online, in branch and by post.

Paragon Bank had the next-best easy access ISA rate this week with its Limited Edition Easy Access ISA (Issue 6) paying 0.41% gross on anniversary. To open this ISA, a £1 minimum deposit is needed. It allows further additions via a nominated account and withdrawals can be made at any time. Transfers in are accepted. The ISA 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 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

 

The top notice ISA rate this week without opening restrictions came from Aldermore, which pays 0.35% gross on anniversary on its 30 Day Notice Cash ISA Issue 12. This ISA requires a £1,000 minimum deposit to open. Further additions are permitted. Withdrawals can be made subject to 30 days’ notice or, if notice is not given, earlier access is allowed subject to 30 days’ loss of interest. Transfers in are accepted. Transfers out are allowed subject to 30 days’ notice or the same loss of interest penalty as earlier access. This ISA must be opened and managed online. There is a version of this ISA that pays interest monthly at the same gross rate.

Offering the next-best notice ISA rate this week was Buckinghamshire Building Society, which pays 0.30% gross yearly on its 30 Day Cash ISA. To open this ISA, a £100 minimum deposit is needed. It allows further additions. Withdrawals are permitted subject to 30 days’ notice or, alternatively, earlier access is allowed subject to 30 days’ loss of interest. Transfers in are not permitted. Transfers out are subject to 30 days’ notice or the same loss of interest penalty as earlier access. This ISA can be both opened and managed in branch and by post. There is also a version of this ISA that pays interest monthly at the same gross rate.

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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