Derin Clark

Derin Clark

Online Reporter
Published: 09/01/2020

After a quiet Christmas and New Year period, this week has seen some changes in the ISA charts. Unfortunately, for those looking for an easy access ISA, this has resulted in a number of the top rates being reduced or withdrawn – although last week’s top rate of 1.36% remains and savers are urged to act quickly if they are looking to open this competitive easy access ISA. Meanwhile, those looking for a fixed rate or notice ISA will be pleased to see that many top rates remain in the charts this week.

It should be noted that the rates below are the best rates available on Thursday and, although correct at the time of publishing, they may not be available on Friday.

The best fixed ISA savings rates

Provider Account Term Rate AER
UBL UK 5 Year Fixed Rate Cash ISA Five years 2.03%
Marsden Building Society Fixed Rate Cash ISA (Issue 119) Three years 1.70%
Metro Bank 2 Year Fixed Rate Cash ISA (Issue 10) Two years 1.60%
Cynergy Bank Loyalty Fixed Rate Cash ISA One year 1.45%

Remaining at the top of the fixed ISA chart this week was UBL UK with its 5 Year Fixed Rate Cash ISA, which pays 2.11% gross on maturity. This ISA requires an opening minimum deposit of £2,000 and allows transfers in from cash ISAs only. It can be opened in branch or by post and then managed by post only. There are versions of this ISA that pay interest on anniversary, quarterly and monthly, all at a lower gross rate.

Aldermore reduced the rate on its 3 Year Fixed Rate Cash ISA today, which resulted in Marsden Building Society topping the chart with its Fixed Rate Cash ISA (Issue 119) paying 1.70% gross yearly until 31 January 2023. To open this ISA, a minimum deposit of £5,000 is required. It allows transfers in from cash ISAs only. It must be opened in branch but can then be managed in branch, by post and by phone.

Topping the two year fixed ISA chart this week was Metro Bank, which pays 1.60% gross yearly on its 2 Year Fixed Rate Cash ISA (Issue 10). This ISA requires an opening minimum deposit of just £1 and transfers in are allowed. It can only be opened in branch, but can then be managed online, in branch and by phone.

New to the top of the one year chart this week was Cynergy Bank with its Loyalty Fixed Rate Cash ISA, which pays 1.45% gross on its anniversary. This ISA is only available to existing Cynergy Bank customers of six months or more and requires an opening minimum deposit of £500. Transfers in are allowed with this ISA, which can only be opened online but can then be managed online, in branch, by post and by phone.

The best easy access ISA rates

Provider Account Notice Rate AER
Al Rayan Bank Instant Access Cash ISA Instant 1.36% (expected profit rate)
Cynergy Bank Online ISA (Issue 1) None 1.31%
Leeds Building Society Double Access ISA Instant 1.30%
Leeds Building Society Limited Issue Online Access ISA (Issue 16) None 1.30%
Yorkshire Building Society 1 Year Limited Access Saver ISA Issue 3 None 1.30%
Yorkshire Building Society Annual Access Account ISA Instant 1.30%

Those looking to open an easy access ISA will be pleased to see that despite a number of rate reductions and withdrawals, Al Rayan Bank continued to offer the top rate. Al Rayan Bank offers an expected profit rate of 1.35% gross monthly on its Instant Access Cash ISA. This ISA requires an opening minimum deposit of £50 and allows unlimited further additions and withdrawals. Transfers in are also permitted with this ISA. It can be both opened and managed online, in branch, by post, by phone and via mobile app.

Cynergy Bank moved into second place in the easy access ISA chart this week with its Online ISA (Issue 1), which pays 1.31% gross yearly. A minimum opening deposit of £1 is required for this ISA, which allows unlimited further additions and withdrawals, as well as transfers in. This ISA can only be opened and managed online.

Leeds Building Society offers the third-best rate of 1.30% gross on its Double Access ISA and its Limited Issue Online Access ISA (Issue 16). The Double Access ISA pays 1.30% gross yearly on an opening minimum deposit of £5,000. It allows unlimited further additions, but restricts withdrawals to two withdrawals per calendar year, then it charges a 30-day loss of interest penalty on all further withdrawals. Transfers in are permitted with this ISA. It must be opened in branch but can then also be managed by post. The Limited Issue Online Access ISA (Issue 16) pays 1.30% gross on maturity on an opening minimum deposit of £1,000. Once it matures, it automatically reverts to an Instant Access ISA maturity account. Further additions are allowed while the issue remains open and savers can make unlimited withdrawals. Transfers in are also permitted with this ISA. It can only be opened and managed online.

Yorkshire Building Society also offers a gross rate of 1.30% on two ISAs. Both its 1 Year Limited Access Saver ISA Issue 3 and Annual Access Account ISA pay this rate on their anniversaries on an opening minimum deposit of £100, which must be new money to the institution. Both ISAs allow unlimited further additions, but restrict withdrawals to one withdrawal day per account year, while transfers in are also permitted. 1 Year Limited Access Saver ISA Issue 3 can only be opened and managed online and reverts to Limited Access Saver ISA Issue 1 after 12 months. Annual Access Account ISA can be opened in branch or by post and then managed online, in branch and by post, and reverts to Easy ISA after 12 months.

The best notice ISA rates

Provider Account Notice Rate AER
Teachers Building Society Education ISA (Issue 1) 90 days 1.40%
Aldermore 30 Day notice Cash ISA Issue 7 30 days 1.30%

Teachers Building Society remained at the top of the notice ISA chart this week with its Education ISA (Issue 1) continuing to pay 1.40% gross yearly on an opening minimum deposit of £100. This ISA is only available to teachers or other education professionals. It allows unlimited further additions and withdrawals are permitted subject to 90 days’ notice, while transfers in are also permitted. This ISA can be opened and managed online and by post.
In addition to this, there was no change at the top of the 30 day notice ISA chart, with

Aldermore continuing to offer the top rate of 1.30% gross on its anniversary on its 30 Day Notice Cash ISA Issue 7. This ISA requires an opening minimum deposit of £1,000 and allows unlimited further additions. Withdrawals are permitted subject to 30 days’ notice or there is a 30-day loss of interest penalty if notice is not given. Transfers in are allowed. This ISA can only be opened and managed online and there is a version that pays interest monthly at a slightly lower gross rate.

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.

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