The best ISA rates this week 23.01.20 | moneyfacts.co.uk

Derin Clark

Derin Clark

Online Reporter
Published: 23/01/2020

This week hopes of a highly competitive ISA season were dampened with the news that average cash ISA rates are at their lowest levels since 2018. In fact, research carried out by Moneyfacts.co.uk found that this month the average easy access ISA rate had fallen to 0.85%, while the average notice ISA had dropped to 1.12% and the average one-year fixed ISA had dropped to 1.15%. At the top of the charts, a number of providers reduced their rates including UBL UK, which had been topping the charts for over a month. There was some good news for savers this week, however, as Hampshire Trust Bank increased the rates on two highly competitive short-term ISAs earlier in the 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 rate ISA savings rates

Provider Account Term Rate AER
UBL UK 5 Year Fixed Rate Cash ISA Five years 1.91%
Marsden Building Society Fixed Rate Cash ISA (Issue 119) Three years 1.70%
Hampshire Trust Bank 2 Year ISA Bond (Issue 4) Two years 1.61%
Cynergy Bank Loyalty Fixed Rate Cash ISA One year 1.45%

Despite reducing the rate on its 5 Year Fixed Rate Cash ISA, UBL UK remained at the top of the fixed rate ISA chart. It is now offering 1.98% gross on maturity on an opening minimum deposit of £2,000. It allows transfers in from cash ISAs only. This ISA can be opened in branch and by post, then managed only by post. UBL UK also continues to offer versions of this account that pay interest on anniversary, monthly and quarterly, all at lower gross rates.

Marsden Building Society offers the top rate in the three-year fixed ISA chart this week. It pays 1.70% gross yearly on its Fixed Rate Cash ISA (Issue 119) until 31.01.2023 on an opening minimum deposit of £5,000. This ISA allows transfers in from cash ISAs only. It can only be opened in branch, but can then be managed in branch, by post and by phone.

New to the top of the two-year fixed ISA chart this week with its 2 Year ISA Bond (Issue 4) was Hampshire Trust Bank, which pays 1.61% gross on anniversary on an opening minimum deposit of £1. Transfers in are allowed with this ISA, which can be opened online and by post and then managed by phone as well.

Cynergy Bank remained at the top of the one-year fixed ISA chart this week with its Loyalty Fixed Rate Cash ISA. Savers should be aware that this is a highly restrictive ISA as it can only be opened by existing customers of six months or more. It pays 1.45% gross on anniversary on an opening minimum deposit of £500. This ISA allows transfers in and can only be opened online. Once opened it can then be managed online, 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


Yorkshire Building Society

Double Access ISA
Limited Issue Online Access ISA (Issue 16)
1 Year Limited Access Saver ISA Issue 3
Annual Access Account ISA

Yearly

On Maturity

None

Instant

1.30%

There was no change at the top of the easy access ISA chart this week with Al Rayan Bank continuing to offer 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. It also permits transfers in. It can be opened and managed online, in branch, by post, by phone and via mobile app.

Cynergy Bank offered the next best rate in the easy access chart this week with its Online ISA (Issue 1) paying 1.31% gross yearly on an opening minimum deposit of just £1. This account allows unlimited further additions and withdrawals, as well as permitting transfers in. It can only be opened and managed online.

Two providers remained in third spot in the chart this week offering 1.30% gross. Leeds Building Society pays this gross rate yearly on its Double Access ISA, while it also pays this gross rate on maturity on its Limited Issue Online Access ISA (Issue 16). Double Access ISA requires a minimum opening deposit of £5,000 and allows unlimited further additions, but restricts withdrawals to two per calendar year, then 30 days’ loss of interest on all subsequent withdrawals. Limited Issue Online Access ISA (Issue 16) requires an opening minimum deposit of £1,000 and allows unlimited withdrawals, with further additions permitted while the issue remains open. Both ISAs permit transfers in. Double Access ISA can be opened in branch and then managed in branch and by post, while Limited Issue Online Access ISA (Issue 16) can only be opened and managed online.

Yorkshire Building Society also pays 1.30% gross on anniversary on both its 1 Year Limited Access Saver ISA Issue 3 and its Annual Access Account ISA.

Both ISAs require an opening minimum deposit of £100, which must be new money to the institution, and allow unlimited further additions. Withdrawals on both ISAs are restricted to one withdrawal day per account year, but transfers in are permitted on both ISAs. 1 Year Limited Access Saver ISA Issue 3 can only be opened and managed online, while Annual Access Account ISA can be opened in branch and by post and then managed online, in branch and by post.

The best notice ISA rates

Provider Account Notice Rate AER
Teachers Building Society Education ISA (Issue 1) 90 days 1.40%
Paragon Bank 120 Day Notice Cash ISA – Issue 1 120 days 1.31%
Aldermore 30 Day Notice Cash ISA Issue 7 30 days 1.30%

Teachers Building Society’s highly restrictive Education ISA (Issue 1) continued to top the notice ISA chart this week. The account pays 1.40% gross yearly, however this ISA is only available to teachers and other education professionals. It requires an opening minimum deposit of £100 and allows unlimited further additions and withdrawals, albeit withdrawals are subject to 90 days’ notice. Transfers in are also permitted. This ISA can be opened and managed online and by post.

Paragon Bank offered the best rate on a notice ISA without opening restrictions this week. Its 120 Day Notice Cash ISA – Issue 1 pays 1.31% gross on anniversary on an opening minimum deposit of £500. This ISA allows unlimited further additions, while withdrawals are also permitted subject to 120 days’ notice; if notice is not given, earlier access has a 120-day loss of interest penalty. Transfers in are allowed with this ISA which can only be opened and managed online. There is also a version of this ISA that pays interest monthly at a slightly lower gross rate.

Aldermore continued to offer its competitive 30 Day Notice Cash ISA Issue 7 this week, which pays 1.30% gross on anniversary. This ISA requires an opening minimum deposit of £1,000 and allows unlimited further additions. Withdrawals are permitted subject to 30 days’ notice; if notice is not given then earlier access has a 30-day loss of interest penalty. Transfers in are permitted. 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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