ISAs are a great saving option for consumers as they allow up to £20,000 (2019/20 tax year limit) tax-free deposits to be made each tax year. There are a number of different cash ISA options available to savers, from fixed rate ISAs that require money to be locked into the account for a set period of time, to easy access ISAs that provide savers with more access to their money. Overall, fixed rate ISAs offer the highest rates, however there are currently competitive rates available across the cash ISA charts.
Savers should be aware that these are the best rates on Thursday and, although correct at the time of publishing, these rates may not be available on Friday.
|UBL UK||5 Year Fixed Rate Cash ISA||Five years||2.01%|
|UBL UK||3 Year Fixed Rate Cash ISA||Three years||1.76%|
|UBL UK||2 Year Fixed Rate Cash ISA||Two years||1.67%|
|Aldermore||1 Year Fixed Rate Cash ISA||One year||1.50%|
Topping the fixed rate ISA chart overall this week was UBL UK offering a rate of 2.09% gross on maturity (2.01% AER) on its 5 Year Fixed Rate Cash ISA. This ISA requires a £2,000 minimum opening deposit and allows transfers in. It can be opened in branch or by post and then managed by post. There are also versions of this account that pay interest on anniversary, quarterly and monthly all at a lower gross rate.
While Hinckley & Rugby Building Society also pays 1.76% AER, UBL UK pays a higher gross rate on its three year fixed rate ISA. UBL UK pays 1.79% gross on maturity on its 3 Year Fixed Rate Cash ISA, which requires a minimum opening deposit of £2,000. This ISA allows transfers in and can be opened in branch or by post and then managed by post. As with its five-year ISA, there are versions of this ISA that pay interest on anniversary, quarterly and monthly on a lower gross rate. UBL UK also topped the two year fixed rate chart this week with its 2 Year Fixed Rate Cash ISA, which pays 1.68% on maturity (1.67% AER) and has the same terms and conditions as the three year fixed ISA. The two-year version also offers options that pay interest on anniversary and monthly at a lower gross rate.
Aldermore topped the one year fixed rate chart offering a rate of 1.50% gross on its 1 Year Fixed Rate Cash ISA. Interest on this ISA is paid on maturity and it requires a minimum opening deposit of £1,000. This ISA allows transfers in and can be opened and managed online-only. There is also a version of this account that pays interest monthly at a slightly lower gross rate.
|Al Rayan Bank||Instant Access Cash ISA||Instant||1.36% (expected profit rate)|
|Virgin Money||Double Take E-ISA Issue 12||None||1.36%|
|Virgin Money||Man Utd Double Take E-ISA Issue 11||None||1.36%|
|Yorkshire Building Society||1 Year Limited Access Saver ISA Issue 2||None||1.35%|
Two providers offered the top rate in the easy access ISA chart this week. Al Rayan Bank pays 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. Transfers in are also allowed. This ISA can be both opened and managed online, in branch, by post, by phone and via its mobile app.
Virgin Money pays 1.36% gross on both its Double Take E-ISA Issue 12 and Man Utd Double Take E-ISA Issue 11. Both these ISAs pay interest yearly and allow unlimited further additions. Withdrawals are restricted to two per calendar year. Both these ISAs allow transfers in. They can only be opened and managed online and they both have versions that pay interest monthly at a slightly lower gross rate.
Yorkshire Building Society also offered a highly competitive rate in the easy access ISA chart this week, with its 1 Year Limited Access Saver ISA Issue 2 paying 1.35% gross on anniversary. This ISA requires an opening minimum deposit of £100 and allows unlimited further additions, while withdrawals are restricted to one withdrawal day per account year. This ISA allows transfers in. It can only be opened managed online.
|Teachers Building Society||Education ISA (Issue 1)||90 days||1.40%|
|Charter Savings Bank||95 Day Notice Cash ISA – Issue 8||95 days||1.35%|
|Aldermore||30 Day Notice Cash ISA Issue 7||30 days||1.30%|
Topping the notice ISA chart overall this week was Teachers Building Society offering 1.40% gross yearly. It should be noted that this ISA is only available to teachers and other education professionals. It requires an opening minimum deposit of £100 and allows unlimited further additions, while withdrawals are permitted but subject to 90 days’ notice. This ISA allows transfers in. It can be both opened and managed online and by post.
Offering the best rate in the notice ISA chart this week without any opening restrictions was Charter Savings Bank paying 1.35% gross on anniversary on its 95 Day Notice Cash ISA – Issue 8. This ISA requires an opening minimum deposit of £5,000 and allows unlimited further additions. Penalty-free withdrawals are subject to 95 days’ notice and earlier access incurs 95 days loss of interest. It allows transfers in. There is also a version of this online-only ISA that pays interest monthly at a slightly lower gross rate.
For accounts with a shorter notice period, Aldermore offered the top rate this week with its 30 Day Notice Cash ISA Issue 7 paying 1.30% on anniversary. This ISA requires an opening minimum deposit of £1,000 and allows unlimited further additions. Earlier access is allowed on 30 days loss of interest and penalty-free withdrawals are subject to 30 days’ notice. Transfers in are allowed. This ISA can only be opened and manage online. It also offers a version that pays interest monthly at a slightly lower gross rate.
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