Before the Office for National Statistics’ (ONS’s) recession announcement, rates stepped up in January for fixed accounts, which saw the largest monthly fall in average rates for a decade in December.
So, while the market remains competitive in this time of relative financial uncertainty, here are the market-leading rates, according to Moneyfacts data.
Easy access accounts
Yet again, the Moneybox Cash ISA tops the class with its 5.09% AER paid on anniversary, which also contains a bonus (0.94%) for the first 12 months from account opening.
This app-only account needs at least £500 in the pot, while a rate of 0.75% AER hits the account when more than three withdrawals are made in a year.
Another app-only offer remains the second-best deal – Zopa’s Smart ISA – Access ISA. It boasts a rate of 5.08% AER and a deposit of £1. To access the deal, customers need to open a Smart Saver account through the Smart Saving Hub.
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Coventry Building Society’s Four Access ISA (Online) takes the third spot, with a 5.05% AER paid either monthly or on anniversary. Much like its rivals, this online-only account needs £1 as a deposit, but permits four withdrawals each year with no penalty. After that amount, you’ll receive a loss of interest worth 50 days.
For the same yearly rate but with more flexibility in accessing your cash, the Online Bonus Issue 3 from Principality is worth investing in. It requires just £1 to open, has a 0.95% introductory bonus for the first 12 months, and allows an unlimited number of withdrawals without a penalty.
Fixed-rate bonds
Virgin Money’s 1 Year Fixed Rate Cash ISA Exclusive Issue 10 pays 5.25% AER and is exclusive to current customers with a Clydesdale Bank, Yorkshire Bank, or B current account. Alternatively, the account is on offer if you are a new or existing Virgin Money customer from 4 December 2019. It has a penalty of 60 days’ loss of interest for early access, but further deposits are accepted. Customers will see their funds profit on the account’s maturity on 31 January 2025, while interest is compounded in the interim period.
Close Brothers replaces Zopa, paying 4.65% AER on its 2 Year Fixed Cash Rate ISA. This requires a hefty deposit of £10,000 to open, but allows for further additions for 10 days from the account opening.
Early access to your funds comes with a loss of 150 days of interest and the account being closed.
The Sharia-compliant UBL UK remains the leading provider for three- and five-year fixes. Its 3 Year Fixed Rate Cash ISA and 5 Year Fixed Rate Cash ISA offer 4.35% AER and 4.16% AER respectively. Although a sizeable £2,000 is needed to open the account, it does contain some flexibility.
The accounts (available in branch, by post, using the app, or on the phone) pay interest on a range of terms, whether it is monthly, quarterly, on maturity, or anniversary that you prefer.
However, early access to your funds means the account will be closed, plus a loss of interest worth 270 days for the three-year fix and 365 for the five-year.
Notice accounts
As is the case within the notice sector of late, Aldermore’s 30 Day Notice Cash ISA Issue 12 rate of 4.50% AER is the top rate for a shorter notice period. Interest is paid either monthly or on anniversary, and a deposit of £1,000 is needed to secure the deal, but additional funds are accepted with no penalties too.
With it being a 30-day notice account, if you want to access your funds earlier, there will be 30 days’ loss of interest applied.
West Brom Building Society’s WeBSave 60 Day Notice ISA (Issue 2) maintains the market-leading rate for 60-day notice.
It pays 5.06% AER and interest is paid monthly or yearly on this online-only offer, and just £1 is required for savings to begin. Additional cash can be added without penalty, but early access to the investment is greeted with a loss of interest worth 60 days.
