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ISA round up - 19th September

It's been a big week of movement in the ISA markets with Virgin Money and Santander fuelling a price war.  However, it's minnow Castle Trust Bank that tops the 1 Year with the biggest move of the week.  Here's our round up of the best buys and key changes in the Individual Savings Account markets:

Easy Access ISA

Last week's leader, Gatehouse Bank, drop to third as both Coventry Building Society and Santander increase rates to 1.85%.  Coventry's ISA only allows six free withdrawals per year, after which it charges 50 days interest, but only needs £1 to open.  Santander's account has no such restrictions but requires a much higher £500 to open.  Virgin Money match Gatehouse's 1.75% but their account is restricted to existing customers.  There's a three way tie for fifth with Cynergy, Paragon and Teacher's Building Society all paying 1.65%, although the latter pays 1.70% on the same account if you are a teacher or education professional.

Notice ISAs

Mansfield Building Society are the best buy Notice ISA with a rate of 1.75% for its 90 Day Notice account.  Teacher's Building Society are second at 1.70% but with a higher 1.75% being paid to teachers and education professionals.   Aldermore Bank sit third but their 1.65% rate only needs 30 Days' Notice.  There's little incentive to look further down the notice ISA tables with nine providers all paying 1.60% or more.

1 Year ISA

There's been a staggering 0.50% increase in the best buy rate with Castle Trust Bank going top paying 3.15%!   Virgin Money (3.02%) and Santander (3%) have also broken the 3% mark.  UBL are fourth at 2.66% which knocks last week's leader,  Secure Trust Bank, down to joint fifth where they've been joined by Charter Savings Bank at 2.65%. While we don't believe Castle Trust Bank will sustain that price point for long, Virgin and Santander certainly can and it's likely that other providers will have to follow suit this week.

2 Year ISA

Virgin Money and Santander are also slugging it out at the top of 2 Year.  Virgin lead the way at 3.27%, having increased their rate by 0.20% during the last week, ahead of Santander at 3.25%.  Hodge Bank complete a new look top three paying 3.17%.  Castle Trust Bank are next at 3.10%, oddly paying less than on their 1 Year, UBL Bank fifth despite increasing its rate to 3.08%.   

3 Year ISA

Virgin Money also top 3 Year at 3.32% with Hodge Bank the bridesmaid at 3.18%.  Castle Trust are third at 3.13% with UBL next at 3.11%. Expect to see more changes in this category in the coming week as providers turn their attention here given the changes in 1 and 2 Year.

5 Year ISA

Shawbrook Bank continue to top the pile paying 3.45% but the chasing pack are closing with Close Brothers up to second with an improved rate of 3.30%.  Leeds Building Society are third at 3.20% with Hodge Bank a smidgen behind at 3.19% and perennial best buy, UBL Bank, down to fifth at 3.16%.

Lifetime ISA

Moneybox have dislodged Beehive Money at the top of the charts with an improved rate of 1.50%, although this does include a 0.50% bonus for 12 months.  Beehive, part of Nottingham Building Society, pay a straight 1.30%.  Newcastle Building Society's 1.20% sits third with Paragon Bank and Skipton Building Society the other two providers in the market - both paying1%.


Photo: Hush Naidoo Jade Photography

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