Sadly, despite last week’s fall in the inflation rate to 0.8%, the ISA market continues to be somewhat fluid, with both rates and product availability still heading in a downward direction. However, there are bright spots for those who are still looking for the best, inflation-beating rate when it comes to a range of ISAs. Happily, the top products in the fixed rate, easy access and notice ISA categories are still offering rates that beat the current level of inflation – although it must be stressed that these could be withdrawn with little notice so consumers would be wise to act quickly to secure these deals.
As ever, savers should be aware that although we have included ISAs that can be opened and managed in branch, consumers are advised to check with the bank or building society to ensure this service is still available, as many are only providing essential banking services in branch at the moment due to the Government’s restrictions on movement.
|United Trust Bank||ISA 7 Year Bond||Seven Years||1.50%|
|Shawbrook Bank||7 Year Fixed Rate Cash ISA Issue 2||Seven Years||1.45%|
|Al Rayan Bank||Fixed Term Deposit Cash ISA||24 months||1.41% (expected profit rate)|
|Metro Bank||5 Year Fixed Rate Cash ISA (Issue 9)||5 Years||1.35%|
Top of the ISA charts this week is United Trust Bank’s ISA 7 Year Bond. It requires minimum deposit of £15,000 to open. The account may be opened and managed by post. Savers can also manage this account by phone. Savers can access the ISA before maturity but will incur an interest penalty.
Shawbrook Banks’ 7 Year Fixed Rate Cash ISA Bond Issue 2 is second in the ISA charts this week, with its interest rate of 1.45% gross .This account requires a £1,000 minimum deposit to open, pays interest on anniversary of opening and accepts transfers in. It must be opened online but can then be managed both online and by phone. There is also a version of this ISA that pays interest monthly at a slightly lower gross rate.
Al Rayan Bank's 24-month Fixed Term Deposit Cash ISAs paying an expected profit rate of 1.40% gross. This ISA has a minimum opening minimum deposit of £1,000. It accepts transfers in for up to 30 days from account opening. This ISA can be opened and managed online, in branch, by post, by phone and via mobile app.
Metro Bank offers their 5 Year Fixed Rate Cash ISA (Issue 10) at 1.35% gross. This account can be opened with as little as £1. The account may be opened in branch, and can then be managed online, in branch or by phone. If you need to access your funds before the maturity date then you will lose 180 days interest.
|Al Rayan Bank||Instant Access Cash ISA||Instant||1.11% (expected profit rate)|
|Cynergy Bank||Online ISA (Issue 3)||None||1.05%|
|Virgin Money||Double take E-ISA Issue 16||None||1.01%|
As it did last week, Al Rayan Bank tops the easy access ISA chart this week, paying an expected profit rate of 1.10% gross monthly on its Instant Access Cash ISA, which requires a £50 minimum deposit to open. This ISA allows unlimited further additions and withdrawals. It accepts transfers in. The ISA can be both opened and managed online, in branch, by post, by phone and via mobile app. Cynergy Bank’s Online ISA (Issue 3) takes second place, offering a rate of 1.05% gross paid yearly for a minimum deposit of just £1. Allowing withdrawals, further additions and transfers in, this product can be opened and managed online only. Last week’s second place becomes this week’s third, with the Virgin Money Double Take E-ISA Issue 16 paying 1.01% gross yearly. A £1 minimum deposit is needed to open this ISA and it allows unlimited further additions. Withdrawals are restricted to two withdrawals per calendar year. Transfers in are accepted. This ISA can only be opened and managed online. There is also a version of this ISA that pays interest monthly at the same gross rate.
|Melton Building Society||60 Day Notice Cash ISA||60 days||1.15%|
|Teachers Building Society||90 Day ISA||90 days||1.00%|
|Kent Reliance||60 Day Notice ISA Issue 20||60 Days||0.90%|
The Melton Building Society’s 60 Day Notice Cash ISA is top of the notice ISA charts with a rate of 1.15% gross for a minimum deposit of just £25. Interest is paid yearly, and this product is restricted to existing members of five years or more or those living in Leicestershire, Lincolnshire, Nottinghamshire or Rutland. Withdrawals are permitted subject to 60 days’ notice, or if notice is not given, earlier access is allowed but with a 60 days’ loss of interest penalty. Transfers in are not accepted. This ISA can be both opened and managed in branch and by post.
The Teacher Building Society's 90 Day ISA is only available to teachers and those in the education profession. It's rate of 1.00% gross places it second in our chart. It can be opened online or by post and has a minimum opening deposit of £100.
Kent Reliance is third in the chart with its 60 Day ISA Issue 20. This pays 0.90 gross and can be opened with a £1,000 minimum deposit. This ISA may be opened online or by post.
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.