The best ISA rates this week 20 05 21 | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 20/05/2021

The Consumer Price Index announcement this week revealed that inflation increased to 1.5% during April, which means that now no ISAs are able to match or beat inflation. While this will come as a disappointment for savers, there is some good news as new higher rates now top the one year fixed ISA and easy access ISA charts.

Savers should note that the rates below are the best rates available at 12pm on Thursday 20 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
Charter Savings Bank
Shawbrook Bank
3 Year Fixed Rate Cash ISA
3 Year Fixed Rate Cash ISA Bond Issue 26

Three years

Three years

0.71%

0.71%

Find out more

Find out more

State Bank of India 2 Year Cash ISA Fixed Deposit Two years 0.65% Find out more
Hampshire Trust Bank 1 Year ISA Bond (Issue 25) One year 0.51% Find out more

 

Shawbrook Bank once again topped the fixed rate ISA chart this week paying 1.25% gross on anniversary on its 7 Year Fixed Rate Cash ISA Bond Issue 3. Shawbrook Bank also topped the five year fixed ISA chart with its 5 Year Fixed Rate Cash ISA Bond Issue paying 1.10% gross on anniversary. Both these ISAs require a £1,000 minimum deposit to open. Earlier access is allowed subject to 360 days’ loss of interest. Transfers in are accepted. Both ISAs must be opened online but can then be managed online and by phone. There are also versions of both these ISAs that pay interest monthly at a slightly lower gross rate of 1.09% on the five-year option and 1.24% on the seven-year option.

Both Charter Savings Bank and Shawbrook Bank topped the three year fixed ISA chart this week. Charter Savings Bank pays 0.71% gross on anniversary on its 3 Year Fixed Rate Cash ISA. To open this ISA, a £5,000 minimum deposit is needed. It allows earlier access subject to 270 days’ loss of interest. Transfers in are accepted. The ISA must be opened and managed online. There is a version of this ISA that pays interest monthly at the same gross rate. Shawbrook Bank’s 3 Year Fixed Rate Cash ISA Bond Issue 26 pays 0.71% gross on anniversary. This ISA requires a minimum deposit of £1,000 to open. It allows earlier access subject to 270 days’ loss of interest and transfers in are accepted. It can only be opened online but can then be managed online and by phone. There is also a version of this ISA that pays interest monthly at the same gross rate.

Topping the two year fixed ISA chart this week was State Bank of India with its 2 Year Cash ISA Fixed Deposit paying 0.65% gross on maturity. This ISA requires a £5,000 minimum deposit to open and savers must have 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, meanwhile a 1% loss of interest is charged if the ISA is closed after the first anniversary. It accepts transfers in from cash ISAs only. The ISA can be both opened and managed online, in branch and by post.

New to the top of the one year fixed ISA chart this week was Hampshire Trust Bank with its 1 Year ISA Bond (Issue 25) paying 0.51% gross on anniversary. To open this ISA, a minimum deposit of just £1 is needed. Earlier access is through transfers out only and subject to 90 days’ loss of interest. Transfers in are accepted. It can be opened online or by phone and then managed online, by post and by phone.

Compare the best fixed rate ISAs

The best easy access ISA rates

Provider Account Notice Rate AER  
Cynergy Bank Online ISA (Issue 12) None 0.46% Find out more
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

 

Cynergy Bank is topping the easy access ISA chart this week with its Online ISA (Issue 12) paying 0.46% gross yearly. This ISA requires a £1 minimum deposit to open and a Cynergy Bank Authenticator App or Digipass is needed to use online banking. It allows further additions and withdrawals. Transfers in are only permitted on account opening and are accepted from cash ISAs only. The ISA must be opened and managed online.

Both Kent Reliance and Yorkshire Building Society had the next-best paying easy access ISA rate this week. 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. Further additions are allowed and withdrawals are permitted but the withdrawal 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. It 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. It requires a £100 minimum deposit to open, but this must be new money to the building society. After 12 months, the ISA reverts to an Easy ISA. Further additions are allowed. Withdrawals are restricted to one withdrawal day per anniversary year. Transfers in are accepted. The ISA 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 once again had the top-paying notice ISA without opening restrictions, with its 30 Day Notice Cash ISA Issue 12 paying 0.35% gross on anniversary. It requires a £1,000 minimum deposit to open. It allows further additions and withdrawals can be made subject to 30 days’ notice. If notice is not given, earlier access is permitted subject to 30 days’ loss of interest. Transfers in are accepted. The ISA must be opened and managed online. 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.

Buckinghamshire Building Society continued to offer the next-best notice ISA rate with its 30 Day Cash ISA paying 0.30% gross yearly. To open this ISA, a £100 minimum deposit is needed. It allows further additions. Withdrawals are permitted subject to 30 days’ notice and earlier access is allowed subject to 30 days’ loss of interest. This ISA does not accept transfers in. It can be both opened and managed in branch and by post.

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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