As ISA season comes to an end, savers may have been disappointed with the rates that have been available recently and long-term savers could be considering whether they may get better returns investing in a stocks and shares ISA instead. Savers considering this option should be aware that investments are usually a must riskier alternative to cash ISAs and they should thoroughly research stocks and shares ISAs before making a decision – more information about stocks and shares ISAs can be found here . For savers preferring cash ISAs, below we’ve highlighted the best rates that have been available in the charts this week.
Savers should note that the rates below are the best rates available at 1pm on Thursday 29 April 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.
|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|
|Shawbrook Bank||3 Year Fixed Rate Cash ISA Bond Issue 26||Three years||0.71%||Find out more|
|State Bank of India||2 Year Cash ISA Fixed Deposit||Two years||0.65%||Find out more|
|Monmouthshire Building Society||1 Year Fixed Rate Cash ISA - Issue 13||One year||0.49%||Find out more|
Shawbrook Bank dominated the ISA charts this week, not only offering the top rate overall, but also the highest rate in the five and three-year charts. Its 7 Year Fixed Rate Cash ISA Bond Issue 3 had the top rate of 1.25% gross, while its 5 Year Fixed Rate Cash ISA Bond Issue 25 topped the five-year chart paying 1.10% gross and its 3 Year Fixed Rate Cash ISA Bond Issue 26 topped the three-year chart paying 0.71% gross. All ISAs pay interest on anniversary and require a £1,000 minimum deposit to open. They allow earlier access subject to 270 days’ loss of interest on the three-year option and 360 days’ loss of interest on the five and seven-year options. They accept transfers in. These ISAs must be opened online but can then be managed online and by phone. There are also versions of these ISAs that pay interest monthly at the same gross rate on the three-year version, and slightly lower gross rates of 1.09% on the five-year option and 1.24% on the seven-year version.
The top two year fixed ISA rate this week came from State Bank of India, which pays 0.65% gross on maturity on its 2 Year Cash ISA Fixed Deposit. To open this ISA, a £5,000 minimum deposit is needed, as well as a State Bank of India current or savings account. Earlier access is permitted on closure only on 30 days’ notice – no interest is paid if the ISA is closed before the first anniversary, and there is a 1% loss of interest if the ISA is closed after the first anniversary. It accepts transfers in from cash ISAs. The ISA can be both opened and managed online, in branch and by post.
Topping the one year fixed rate ISA chart this week was Monmouthshire Building Society with an ISA that is only available to those located in England and Wales. Its 1 Year Fixed Rate Cash ISA – Issue 13 pays 0.49% gross on maturity and requires a £3,000 minimum deposit to open. Earlier access is allowed on closure only and subject to 90 days’ loss of interest. Transfers in from cash ISAs are accepted. This ISA can only be opened in branch but can then be managed online, in branch and by post.
|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|
|Paragon Bank||Limited Edition Easy Access ISA (Issue 6)||None||0.41%||Go to provider’s site|
Two ISAs paid the highest rate in the easy access ISA chart this week of 0.45% gross. Kent Reliance paid this rate on its Cash ISA – Easy Access – Issue 28, which pays interest yearly. A £1,000 minimum deposit is needed to open this account. It allows further additions via cash at branch, cheque, bank transfer or debit card. It also allows withdrawals, however, 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. The ISA can be opened online, in branch or by post and then managed online, in branch, by post and by phone. There is also 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. This ISA requires a £100 minimum deposit to open, which must be new money to the building society. Further additions can be made. Withdrawals are restricted to one withdrawal day per account year. Transfers in are accepted. This ISA can be opened in branch or by post and then managed online, in branch and by post. Savers should also be aware that this ISA reverts to an Easy ISA after 12 months.
The next-best rate this week came from Paragon Bank, which pays 0.41% gross on anniversary on its Limited Edition Easy Access ISA (Issue 6). To open this ISA, a £1 minimum deposit is required. It allows both further additions via a nominated account and withdrawals. Transfers in are accepted. It must be opened and managed online. There is also a version of this ISA that pays interest monthly at the same gross rate.
|Aldermore||30 Day Notice Cash ISA Issue 11||30 days||0.40%||Find out more|
|Buckinghamshire Building Society||30 Day Cash ISA||30 days||0.30%||Find out more|
Tipton & Coseley Building Society had the best rate in the notice ISA chart overall this week, offering 0.45% gross yearly on its 30 Day Notice ISA (Issue 2). This ISA is, however, only available to those living within certain postcode areas. Savers interested in this ISA can find out more information on our notice ISA chart.
The best notice ISA rate available without localised restrictions and available to new customers came from Aldermore, which pays 0.40% gross on anniversary on its 30 Day Notice Cash ISA Issue 11. This ISA requires a £1,000 minimum deposit to open. It allows further additions. Withdrawals can be made subject to 30 days’ notice, and alternatively earlier access is allowed on 30 days’ loss of interest. Transfers in are accepted. The ISA must be opened and managed online. A version of this ISA is available that pays interest monthly at the same gross rate.
The next-best rate came from Buckinghamshire Building Society with its 30 Day Cash ISA paying 0.30% gross yearly. A £100 minimum deposit is needed to open this ISA, which allows further additions. Withdrawals are permitted subject to 30 days’ notice, alternatively, earlier access is allowed subject to 30 days’ loss of interest. The ISA does not accept transfers in. It can be both opened and managed in branch and by post. There is also a version of this ISA that pays interest monthly at the same gross rate.
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