The best ISA rates this week 18.06.20

Although inflation falling to 0.5% will offer a little relief to savers, on the whole, the savings market remains highly challenging, with just two easy access ISAs offering rates above 1.00%. There was more competition in the fixed rate ISA charts, with many of the top-paying ISAs paying rates above 1.20%.

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.

Although it is unusual for a short-term ISA to beat the rate on long-term ISAs, this week Al Rayan Bank topped the fixed rate ISA chart overall with a two year ISA. The 24-month version of its Fixed Term Deposit Cash ISA pays an expected profit rate of 1.40% gross on a minimum opening deposit of £1,000. Al Rayan Bank also topped the one year chart this week, with the highly competitive 12-month version of its Fixed Term Deposit Cash ISA paying an expected profit rate of 1.20% gross. This ISA also requires a minimum opening deposit of £1,000. Both ISAs pay profit quarterly. They accept transfers in for up to 30 days from account opening. These ISAs can be both opened and managed online, in branch, by post, by phone and via mobile app.

The second-best rate in the fixed rate ISA chart this week came from United Trust Bank, which pays 1.35% gross on its ISA 7 Year Bond. This ISA pays interest on anniversary and requires a minimum deposit of £15,000 to open. It accepts transfers in. This ISA must be opened by post but can then be managed by post and by phone.

UBL UK topped the five and three year fixed rate ISA charts this week. Its 5 Year Fixed Rate Cash ISA offered the best rate in the five year chart paying 1.24% gross on maturity. To open this ISA, a minimum deposit of £2,000 is needed. It accepts transfers in from cash ISAs. There are also versions of this ISA that pay 1.21% gross on anniversary, and 1.20% gross quarterly or monthly. In the three year fixed rate ISA chart, UBL UK pays 1.11% gross on maturity on its 3 Year Fixed Rate Cash ISA. This ISA also requires a minimum deposit of £2,000 to open and accepts transfers in from cash ISAs. There are also versions of this ISA that pays 1.10% gross on anniversary or quarterly, and 1.09% monthly. All these ISAs can be opened in branch or by post but must be managed by post.

The best-paying easy access ISA once again came from Al Rayan Bank, which pays an expected profit rate of 1.10% gross monthly on its Instant Access Cash ISA. This ISA requires a minimum opening deposit of £50. It allows unlimited further additions and withdrawals. Transfers in are accepted. It can be both opened and managed online, in branch, by post, by phone and via mobile app.

Cynergy Bank had the second-best easy access ISA rate this week on an ISA that is only available to existing customers. Its Online ISA (Issue 3) pays 1.02% gross yearly and requires a minimum deposit of £1 to open. A Cynergy Bank Authenticator App or Digipass is also required to open and operate this ISA. It allows unlimited further additions. Withdrawals are permitted at any time. Transfers in from cash ISAs are accepted. This ISA can only be opened and managed online.

The third-best easy access ISA rate came from National Savings & Investments (NS&I), which pays 0.90% gross on its Direct ISA. To open this ISA, a minimum deposit of £1 is needed. It allows unlimited further additions. Withdrawals are permitted but must be made via a nominated account. This ISA is also 100% backed by HM Treasury. Transfers in are not accepted. It can be both opened and managed online and by phone.