Fierce competition has reignited between banks, building societies and investment platforms offering cash Isas, with several of them launching new deals in recent days to tempt savers.
Savings rates have been plummeting for weeks, so it’s been a pleasant surprise to see a new set of eye-catching offers appear this past week.
Not all of them appear on my Best Buy charts because they have conditions that mean they won’t be the best option for all savers.
New deals: Savings rates have been plummeting for weeks, so it’s been a pleasant surprise to see a new set of eye-catching deals pop up this past week.
But, if you know their terms and conditions and are willing to abide by them, they could represent a good opportunity to grow your money.
Among the most attractive new offers launched is Coventry Building Society’s new Four Access Isa (Online) 2, which pays 4.8 per cent.
It doesn’t show up on my Best Buy chart because it’s not a really easy-to-access account: You can only make up to four free withdrawals a year, rather than logging in and withdrawing as needed.
But you will be able to enjoy a very competitive rate. If you’re happy using an app, Trading 212 pays an even higher 5.1 per cent on an easy-to-access Isa.
Skipton BS’s new Base Rate Tracker pays 4.65 per cent.
If you opt for this account, the rate is not fixed, but at least you will always know where you stand.
This is because it follows the Bank of England’s base rate, always paying only 0.35 percentage points below it.
However, it has a drawback: it tracks the base rate only for one year. After that, your money is transferred to another easily accessible Isa.
Society pays just 3.55 per cent of your Cash Isa Saver, so make sure you set a one-year reminder if you open an account.
The best fixed rate Isas are just above 4.5 per cent for one year, or 4.4 per cent for two years.
These fixed rates may be lower than those offered before the Bank of England’s base rate change in August from 5.25 per cent to 5 per cent, but may prove to be good value if the base rate falls further.
The top one-year rate is 4.56 per cent which Aldermore released today.
Some 2.1 million savers are expected to pay tax on their interest this financial year, an HM Revenue & Customs freedom of information request made by investment platform AJ Bell shows.
You can put up to £20,000 each tax year into tax-free Isas and, in the case of cash Isas, you can split this between fixed rates and easy access with different providers.
Sy.morris@dailymail.co.uk
Check the best Isa cash rates in our savings tables
