ISA round up - 3rd October
After pausing for breath last week,we've seen some huge increases again on fixed rate ISAs. Virgin Money and UBL Bank continue to go toe to toe in most categories as 2 and 3 Year Fixed ISAs break the 4% mark. Santander have also increased rates this morning and it is great to see a big high street name finally paying some competitive rates. Here's our round up of the best buys and key changes in the Individual Savings Account markets:
In a week of unprecedented change in savings rates, it's extraordinary that there were no changes in the easy access ISA best buys. Paragon Bank still lead the way with their Triple Access ISA paying 1.90%. Coventry Building Society and Santander share joint second with both paying 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. Marcus and Saga are next at 1.80%, sharing joint fourth. Gatehouse Bank and Virgin Money are next at 1.75%.
Notice best buys are also unchanged on the week. Mansfield Building Society are still 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 10 providers all paying 1.65% or more.
UBL lead the way with a best buy 3.61% on 1 Year. That's enough to keep Virgin Money in second spot at 3.50%. Santander are third, having increased their rate this morning to 3.35% to move ahead of Kent Reliance at 3.20%. Castle Trust Bank (3.15%), Close Brothers and Leeds Building Society (both 3.05%) make it seven providers above 3% as the ISA market heats up.
Virgin Money are the new leaders, paying a huge 4.12% on their 2 Year ISA. That takes top spot from UBL, who increased their rate to 3.65% and sit second. Santander are just behind on 3.60% with a drop then to Secure Trust Bank in fourth at 3.40%. Last week's best buy, Leeds Building Society, are fifth at 3.30%.
It's the same top two in 3 Year with Virgin Money topping the charts at 4.25%, ahead of UBL Bank at 3.70% in second. Secure Trust and Yorkshire Building Society share third spot at 3.50% with United Trust Bank (3.40%) completing the top five.
Former leaders, Shawbrook Bank, drop to joint fifth. UBL are the new best buy at 3.70% with United Trust Bank second at 3.55%, although they share this with Furness Building Society and Secure Trust Bank. Close Brothers were also on the move, joining Shawbrook on 3.45%.
No change in Lifetime ISAs with Moneybox leading the way at 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 paying 1%. Expect to see changes here once the providers have digested the base rate increase as these rates now look underpriced given where other easy access markets are.