The Best ISA Rates This Week 25.02.21 | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 25/02/2021

There was little change at the top of the ISA charts this week, which will be a disappointment for savers hoping to see ISA rates increase in the build up to the ISA season. Although ISA rates have remained low, time is running out for savers to use up the 2020/21 ISA allowance of £20,000, so should consider taking advantage of the best rates available before the ISA deadline for this tax year ends.

Savers should also note that the rates below are the best rates available at 2pm on Thursday 25 February 2021 and, although correct at the time of publishing, they may not be available after this time.

The best fixed rate ISA savings rates

Provider Account Term Rate AER
Gatehouse Bank 5 Year Fixed Term Green Cash ISA Five years 1.30% (expected profit rate)
Gatehouse Bank 3 Year Fixed Term Green Cash ISA Three years 0.90% (expected profit rate)
Al Rayan Bank Fixed Term Deposit Cash ISA 24 months 0.75% (expected profit rate)
Al Rayan Bank Fixed Term Deposit Cash ISA 12 months 0.65% (expected profit rate)

 

This week, Gatehouse Bank continued to top the fixed rate ISA chart overall paying an expected profit rate of 1.30% gross on anniversary on its 5 Year Fixed Term Green Cash ISA. Gatehouse Bank also topped the three year fixed ISA chart, paying an expected profit rate of 0.90% gross on anniversary on its 3 Year Fixed Term Green Cash ISA. Both ISAs require a £1,000 minimum deposit to open and benefit from Gatehouse Bank planting a tree in a UK woodland when an account is opened and funded, and the trees are planted in UK woodland projects certified by the UK Government’s Woodland Carbon Code. Transfers in are accepted. These ISAs must be opened and managed online.

Al Rayan Bank topped the two and one year fixed rate ISA chart this week, with the 24-month option of its Fixed Term Deposit Cash ISA paying an expected profit rate of 0.75% gross quarterly and the 12-month version paying an expected profit rate of 0.65% gross quarterly. To open these ISAs, a £1,000 minimum deposit is needed. They allow transfers in. The ISAs can be opened online, in branch, by phone or via mobile app and then managed online, in branch, by post, by phone and via mobile app.

Compare the best fixed rate ISAs

The best easy access ISA rates

Provider Account Notice Rate AER
Al Rayan Bank Instant Access Cash ISA (Issue 2) Instant 0.60% (expected profit rate)
Cynergy Bank
Virgin Money
Online ISA (Issue 9)
Easy Access Cash ISA Exclusive Issue 1
None
Instant
0.50%
0.50%

 

The top easy access ISA rate this week came from Al Rayan Bank, which pays an expected profit rate of 0.60% gross monthly on its Instant Access Cash ISA (Issue 2). A minimum deposit of £50 is needed to open this ISA, which allows further additions and withdrawals. Transfers in are accepted. This ISA can be both opened and managed online, in branch, by post, by phone and via mobile app.

Four ISAs had the second-best easy access rate this week, although only two ISAs, from Cynergy Bank and Virgin Money, are available to those outside certain postcode areas. Cynergy Bank pays 0.50% gross yearly only its Online ISA (Issue 9), which requires a £1 minimum opening deposit, along with a Cynergy Bank Authenticator App or Digipass, which is needed to open and manage the ISA. It allows further additions and withdrawals. Transfers in are accepted but only permitted on account opening. The ISA must be opened and managed online. Virgin Money pays 0.50% gross yearly on its Easy Access Cash ISA Exclusive Issue 1, which does not require a minimum deposit to open. This ISA is available to new and existing Virgin Money, Clydesdale Bank or Yorkshire Bank current account customers from the 4 December 2019. Further additions and withdrawals are allowed. Transfers in are permitted. This ISA can be opened online or in branch and then managed online, in branch, by post, by phone and via mobile app. Tipton & Coseley Building Society also pays 0.50% gross yearly on its Branch ISA (Issue 4), but this ISA is only available to those living within the B, DY, WS or WV postcode areas and the issue is due to be replaced with a lower rate paid. Meanwhile, Teachers Building Society pays 0.50% gross yearly on its Teachers for Teachers Easy Access ISA (Issue 1), although this ISA is only available to teachers and other education professionals.

The third-best ISA rate this week came from Progressive Building Society, which pays 0.45% gross yearly on its Cash ISA Saver, however this ISA is only available to those within Northern Ireland. The next best rate in the easy access ISA chart this week was 0.40% gross, which was paid on ISAs from Paragon Bank, Charter Savings Bank, Coventry Building Society, Leeds Building Society, Marsden Building Society, Shawbrook Bank, Stafford Railway Building Society, Teachers Building Society, Vernon Building Society, and Yorkshire Building Society. Savers should be aware that some of these accounts have opening restrictions. More information about the ISAs can be found on our easy access ISA chart.

Compare the best easy access ISAs

The best notice ISA rates

Provider Account Notice Rate AER
Marsden Building Society Branch Cash ISA 95 (Issue 2) 95 days 0.55%
Aldermore 30 Day Notice Cash ISA Issue 11 30 days 0.40%
Kent Reliance Cash ISA – 60 Day Notice – Issue 25 60 days 0.35%

 

The top notice ISA rate this week came from Marsden Building Society, which pays 0.55% gross yearly on deposits of £5,000. This ISA also pays a higher rate of 0.65% gross on deposits at £25,000 and a lower rate of 0.45% gross on deposits of £1,000. The ISA requires a £1,000 minimum deposit to open. It allows further additions and withdrawals can be made subject to 95 days’ notice. If notice is not given, earlier access is permitted on closure only and subject to 95 days’ loss of interest. Transfers in from cash ISAs are accepted. This ISA can only be opened and managed in branch.

The next best notice ISA rate this week came from Aldermore, which pays 0.40% gross on anniversary or monthly on its 30 Day Notice Cash ISA Issue 11. To open this ISA, a £1,000 minimum deposit is needed. It allows further additions. Withdrawals are permitted subject to 30 days’ notice and if notice is not given earlier access is allowed subject to 30 days’ loss of interest. Transfers in are accepted. This 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.

Kent Reliance had the third-best notice ISA rate this week, paying 0.35% gross yearly or monthly on its Cash ISA – 60 Day Notice – Issue 25. This ISA requires a £1,000 minimum deposit to open. It permits further additions. Withdrawals can be made subject to 60 days’ notice, or if notice is not given, earlier access is permitted on 60 days’ loss of interest. The withdrawal method is dependent on how the account was opened. Transfers in are accepted but transfer requests must be made within 30 days of account opening. This ISA can be opened online, in branch or by post and then managed online, in branch, by post and by phone.

Compare the best notice ISAs

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