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.

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