Interactive Investor

Savings update: get the best Isa rate before the deadline

3rd April 2019 11:59

Sylvia Morris from interactive investor

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Savers have until Friday 5 April to use up their £20,000 Cash Isa allowance for this tax year.

The best deals on tax-free accounts are typically online. For easy-access accounts, they include Paragon’s Limited Edition Easy Access Cash Isa at 1.45%, OakNorth’s Easy Access Cash Isa at 1.44%, and Shawbrook’s Easy Access Cash Isa at 1.43%.

There are other accounts with rates around the same level, or even higher, but they often come with stricter terms.

For example, Santander’s e-Isa pays 1.5%, but to qualify for the account you must also be a Santander 1|2|3 World or Select customer. The headline rate is payable for only 12 months, after which your money is transferred into the bank’s Isa Saver, which has a much lower rate. 

Virgin Money’s Double Take E-Isa pays a competitive 1.45%, but you are restricted to two withdrawals a year.

Nationwide pays 1.4% on its Loyalty Single Access Isa, but you must have been a member of the society for at least a year and you can make only one withdrawal a year.

Yorkshire Building Society’s Single Access Isa, which pays 1.46%, limits you to withdrawals on one day a year, and after a year your money is moved into an account that pays less interest.

On fixed-rate Cash Isas, the best one-year fixed-rate accounts are on offer from Shawbrook Bank at 1.77%, OakNorth at 1.76%, and Charter Savings Bank at 1.75%. For two years, Charter Savings Bank pays 1.95%, and OakNorth 1.92%.

On easy-access taxable accounts, Kent Reliance’s Easy Saver Online pays a top 1.5%.

Goldman Sachs’ Marcus account and Virgin Money also both pay 1.5%. The Marcus account includes a bonus of 0.15 percentage points for the first year, while Virgin Money’s Double Take online account limits you to two withdrawals a year.

The most that you can earn on a one-year fixed rate bond is 1.97% from Shawbrook Bank followed by Close Brothers Savings at 1.96%.

For two years, PCF Bank pays 2.26%, while Aldermore, Close Brothers and Tandem all pay 2.25%.

This article first appeared on our sister website Money Observer

This article was originally published in our sister magazine Moneywise, which ceased publication in August 2020.

These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

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