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ISA round up - 29th August

It's been all change at the top of the ISA best buys this week.  UBL Bank have set the pace with four new best buys launched during last week.  With interest rates on ordinary savings accounts at a level now where a basic rate taxpayer could be above the Personal Savings Allowance threshold with less than £30,000 saved and just £15,000 for higher rate taxpayers, more savers are looking again at Individual Savings Accounts (ISAs).  Although fixed rate ISAs lag behind fixed rate bond, easy access ISAs are almost on par with their ordinary counterparts and certainly worth considering for cash savers.  Here's our round up of the best buys and key changes in the Individual Savings Account markets:

Easy Access ISA

Virgin Money are the big mover in the easy access, raising their rate to 1.75%.  The account is open to existing customers only but such a move brings hope that other providers will follow suit.  The best rate open to all is from Skipton Building Society who are paying 1.60% and the account can be opened online, in their branches, by post or phone.  With a minimum balance of just £1 it's very accessible. Next best is Paragon's Triple Access ISA paying 1.55%.  There are seven providers paying 1.50% with smaller players like Scottish Building Society fighting alongside big five providers like Santander.  Shawbrook and Sainsburys have no restrictions whereas Marcus and Saga have a bonus of 0.20% (for 12 months) included in their rate and the Nationwide and Newcastle Building Societies only allow three withdrawals per year from their accounts.

Notice ISAs

Furness are the best buy Notice ISA with a rate of 1.60% for its 45 Day Notice account. Teacher's Building Society are next with their 90 Day Notice paying 1.45% (with a higher rate of 1.50% for teachers and education professionals) and previous long term leader, Aldemore Bank and their 30 Day Notice at 1.40%, in third. With 10 easy access ISA rates at 1.50% or above there's little incentive to look further down the notice ISA tables.  

1 Year ISA

UBL Bank lead the way with a best buy of 2.51%.  Their increased rate is enough to beat Coventry Building Society, whose new issue pays 2.50% but has a fixed maturity of 30th September 2023, making it a 13 month ISA in effect.  Gatehouse Bank also pay 2.50% for 1 Year with Close Brothers (2.45%) and Shawbrook (2.42%) the next best ahead of Aldermore Bank at 2.40%, who have been consistently competitive this year.

2 Year ISA

It is tight at the top of 2 Year with UBL paying a best buy rate of 2.87% along with Virgin Money.  Last week's leader Aldermore Bank are third at 2.85% with Charter Savings Bank alongside them. Close Brothers, Secure Trust Bank and Shawbrook all sit just behind at 2.80%.  Leeds Building Society are also worth a mention - although their rate is only 2.65%, their fixed rate is for a shorter term of 16 months, which is just ahead of the best 1 Year rates.

3 Year ISA

UBL are the new leaders on 3 Year at 2.92%, knocking last week's leader Aldermore Bank down to second at 2.90%.  They've been matched by United Trust Bank who increased their rate to 2.90% during the week.  With Coventry Building Society and Secure Trust Bank also at 2.90% just 0.02% separates the top five!

5 Year ISA

UBL complete a clean sweep of best buys by increasing their rate to 3.10%.  However, they share top spot with West Brom Building Society with Furness Building Society cutting their rate to 2.70% during the week. United Trust Bank are third with an improved rate of 3%, which is matched by Secure Trust Bank.  

Lifetime ISA

Newcastle Building Society took top spot during the week, responding to the base rate increase by upping their rate to a best buy 1.20%.  Moneybox also pays the same rate but theirs is courtesy of a 0.20% bonus for 12 months).  Paragon Bank and Skipton Building Society are next best at 1% with Beehive Money, part of Nottingham Building Society, the final provider at 0.90%.


Image by Josh Appel

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