The best ISA rates this week 13 05 21 | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 13/05/2021

Although there has been little change at the top of the ISA charts this week, savers will note that a new, slightly higher rate is now available at the top of the one year fixed ISA chart. As well as this, competition within the easy access ISA chart has increased this week, with two providers now offering the second-best rate of 0.41% AER.

Savers should note that the rates below are the best rates available at 12pm on Thursday 13 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
Secure Trust Bank 1 Year Fixed Rate Cash ISA 20.06.22 0.50% Find out more

 

Dominating the fixed rate ISA chart again this week was Shawbrook Bank, which topped the chart overall, as well as the five and three year 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. Earlier access is allowed on the three-year option subject to 270 days’ loss of interest and on the five and seven-year options subject to 360 days’ loss of interest. All these ISAs accept transfers in. They must be opened online but can be managed online and by phone. There is a version of the three year ISA that pays interest monthly at the same gross rate and the five and seven-year options that pay interest at sightly lower gross rates of 1.09% and 1.24% respectively.

State Bank of India continued to top the two year fixed rate ISA chart this week with its 2 Year Cash ISA Fixed Deposit paying 0.65% gross on maturity. To open this ISA, a £5,000 minimum deposit is needed, as well as a State Bank of India current or savings account. It allows earlier access on closure only and subject to 30 days’ notice. No interest is paid if the account is closed before the first anniversary, alternatively a 1% loss of interest penalty is applied if the account is closed after the first anniversary. Transfers in from cash ISAs are accepted. This ISA can be both opened and managed online, in branch and by post.

Topping the one year fixed rate ISA chart this week was Secure Trust Bank, which pays 0.50% gross yearly on its 1 Year Fixed Rate Cash ISA. This ISA requires a £1,000 minimum deposit to open. Earlier access is permitted on closure only and subject to 90 days’ loss of interest. It accepts transfers in from cash ISAs. The ISA must be opened online but can then be managed online and by phone.

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
Cynergy Bank Online ISA (Issue 11) None 0.41% Find out more

 

This week, Kent Reliance and Yorkshire Building Society continued to offer the best rate on easy access ISAs that are available to new customers. Kent Reliance pays 0.45% gross yearly on its Cash ISA – Easy Access – Issue 28, which requires a £1,000 minimum deposit to open. This ISA allows further additions and withdrawals are permitted, although 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 a version of this ISA that pays interest monthly at the same gross rate.

Yorkshire Building Society pays 0.45% gross on anniversary on its Annual Access Account ISA Issue 4. A £100 minimum deposit is needed to open this account, which must be new money to the building society. It allows further additions. Withdrawals can only be made on one day per anniversary year. Savers should also be aware 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.

Both Paragon Bank and Cynergy Bank offered the next-best easy access ISA rate this week. Paragon Bank pays 0.41% gross on anniversary on its Limited Edition Easy Access ISA (Issue 6). To open this ISA, just a £1 minimum deposit is needed. It allows further additions via a nominated account and withdrawals. Transfers in are accepted. This ISA must be opened and managed online. There is also a version of the ISA that pays interest monthly at the same gross rate.

Cynergy Bank pays 0.41% gross on its Online ISA (Issue 11), which requires a £1 minimum deposit to open. This ISA also requires a Cynergy Bank authenticator app or digipass to open and operate the account. Further additions and withdrawals are allowed. It accepts transfers in from cash ISAs on account opening only. The ISA must be opened and managed online.

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 continued to offer the top notice ISA rate on an ISA without opening restrictions. Its 30 Day Notice Cash ISA Issue 12 pays 0.35% gross on anniversary on a £1,000 minimum opening deposit. This ISA allows further additions. Withdrawals can be made subject to 30 days’ notice or, if notice is not given, earlier access is permitted subject to 30 days’ loss of interest. It accepts transfers in. The ISA must be opened and managed online. There is a version of this ISA 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 notice ISA rate on an ISA without opening restrictions came from 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 can be made subject to 30 days’ notice, or earlier access is permitted subject to 30 days’ loss of interest. Transfers in are not accepted. The ISA can be both opened and managed in branch or by post. There is also a version of this ISA that pays interest monthly at the same gross rate.

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