The best cash ISA rates this week

The best easy access cash ISA rates

Long-time front runner, Plum, leads our easy access ISA chart for yet another week; its Plum Cash ISA continues to pay 5.17% AER monthly when considering the included for the first 12 months and applied on anniversary. While this digital account can be both opened and managed via the Plum app with an initial investment of just £1, keep in mind a lower rate of 3.00% AER will be paid if your balance falls below £100. This same rate also applies for making more than three withdrawals from your pot within a year. While this account accepts transfers in from a range of different ISAs, it should be noted moving money across from an existing ISA will see you sacrifice the introductory bonus and instead receive the underlying rate of 4.29% AER.

Meanwhile, fellow app-based provider, Chip is promoted to second place on our chart this week following a recent rate reduction from Moneybox. The Chip Cash ISA (powered by ClearBank) continues to offer a highly competitive rate of 5.10% AER, also paid monthly on a minimum deposit of £1. As this account allows unlimited penalty-free withdrawals, it may appeal if you’re intending to regularly dip into your savings. What’s more, as a flexible ISA, you’ll be able to replace any withdrawn funds without it counting towards your annual ISA allowance. However, if you’re looking to move across funds held in another ISA, you’ll need to compare other options, as this account doesn’t accept transfers in.

Alternatively, the Smart ISA – Access ISA pot from Zopa also improves its position on our chart; it offers 5.08% AER monthly when considering the 0.50% bonus included for the first 12 months. This app-based account can also be opened with a £1 minimum deposit but, in order to apply, you’ll either need to already hold or open a Smart Saver account via the Smart Savings Hub on the Zopa app. Once established, this flexible ISA then accepts transfers in from other cash ISAs and permits unlimited penalty-free withdrawals, as well as further additions, via a nominated account. Like any account that includes an introductory bonus, though, remember to check whether you’re still receiving competitive returns once the bonus expires.

With digital providers continuing to dominate our charts this week, those looking for accounts that operate via more traditional means can filter by account opening and management methods by selecting ‘full search’ on our charts.

The best fixed cash ISA rates

As for fixed rate ISAs, Virgin Money’s 1 Year Fixed Rate Cash ISA Exclusive Issue 12 paying 5.05% AER continues to top our one-year chart and is still the only account in this sector to offer returns in excess of 5.00% AER. New and existing Virgin Money current account customers from 4 December 2019, or existing customers who originally opened a Clydesdale Bank, Yorkshire Bank or B current account, can apply online or in branch with no minimum deposit specified. Once opened, this account can additionally be managed by post, over the phone or via mobile app, with further contributions permitted so long as the issue remains available. Interest will then be paid out once the account matures on 30 April 2025 – earlier access to your funds before this date is permitted subject to 60 days’ loss of interest.

Even though shorter-term accounts still outperform their longer-term counterparts, if you’re specifically looking for a two or five-year fixed ISA, you can continue to find the best rates available from State Bank of India this week. Its 2 Year Cash ISA Fixed Deposit and 5 Year Cash ISA Fixed Deposit pay 4.65% AER and 4.15% AER, respectively, on maturity (with interest compounded annually). These accounts can be opened in branch or by post with a respective £1,000 and £5,000 minimum deposit so long as you also hold a new current or savings account with the provider. They can then additionally be managed online but do not allow for further additions. While early access can be gained upon account closure after serving 30 days’ notice, it should be noted no interest will be paid out if the account is closed before its first anniversary. Meanwhile, closing the accounts after this milestone will incur a 1% loss of interest.

Otherwise, Shawbrook Bank still offers the best three-year fixed ISA rate with its 3 Year Fixed Rate Cash ISA Bond Issue 55 paying 4.41% AER either monthly or anniversary. Further additions to a £1,000 minimum deposit are permitted without restriction after opening this account online. It can then also be managed over the phone, with earlier access granted subject to 270 days’ loss of interest.

The best notice cash ISA rates

Aldermore spends another week at the top of our up to 30-day notice ISA chart. However, as its 30-Day Notice Cash ISA Issue 12 continues to pay 4.50% AER monthly or on anniversary, keep in mind higher rates can be found from the market-leading no notice ISAs. Nevertheless, this account can be both opened and managed online following a £1,000 initial investment – further additions to which are permitted without restriction. As its names suggests, 30 days’ notice is needed before making a withdrawal from this flexible ISA, but early access without serving notice can be gained subject to 30 days’ loss of interest.

It should be noted, when it comes to notice accounts, you can usually secure a higher rate if you’re willing to provide more notice before making a withdrawal. With this in mind, the WebSave 60 Day Notice ISA (Issue 2) from West Brom BS offers the best rate for up to 60 days’ notice. Paying 5.10% AER either monthly or yearly, just a single pound deposit is needed to open and manage this account online. Again, further additions are permitted without restriction, while earlier access is subject to a 60-day loss of interest penalty.