ISA round up - 13th March
12/03/2023
Easy access ISA rates improved significantly on the week with five providers paying more than 3%. Fixed rates also improved with Shawbrook Bank taking top spot in 1 and 2 Year Fixed and although longer term fixed rates look like they won't go any higher, shorter term rates look sustainable at current levels, with providers moving up behind the leading players, providing support for current rates. All eyes are on this week's Spring Budget to see if there are any increases in ISA allowances or changes to rules. We aren't expecting any great surprises but there's a chance the government will look at cutting the penalty on Lifetime ISAs to 20%, instead of 25%, which means those withdrawing lose some of their deposits as well as the the government bonus and interest. Here's our round up of the best buys and key changes in the Individual Savings Account markets:
There are big changes at the top of easy access ISAs with the top three rates all improved on last week. Paragon Bank move top as they increased their Triple Access ISA to 3.10%. Yorkshire Building Society also pay 3.10% but as it only allows one withdrawal per annum, we haven't included it in our tables. Gatehouse Bank and Cynergy Bank both pay 3.05% with no withdrawal restrictions, ahead of previous leader Shawbrook, at 3.01%. However, there's a great offer for savers who haven't signed up to Hargreaves Lansdown's Active Savings - they are offering £100 cashback on Coventry Building Society's Limited Access ISA paying 3%, for those saving at least £10,000. This equates to a 4% annual return on £10,000 or 3.50% for those saving the full £20,000 ISA allowance. Coventry, Harpdenden Building Society and Virgin Money are all paying 3%. With eleven providers paying between 2.95% and 3.10%, there's a strong likelihood we will see further increases in rates this week.
Notice ISA best buys are largely unchanged with Furness Building Society leading the way at 3.30% on their 45 Day Notice. Mansfield Building Society pay 3.25% - but on a huge 180 Days' Notice, although they do pay 2.85% on 95 Days. Newcastle Building Society launched a new 100 Day Notice paying 3.10% to take third spot from Loughborough Building Society, who pay 3.05% on 120 Day Notice and, like Mansfield, this account is only available by post or in branch. Hinckley & Rugby are fifth at 2.95% on their 90 Day Notice but have been joined by Buckinghamshire Building Society who pay the same rate but on 95 Day Notice. Next best is Aldermore Bank who pay 2.80% on just 30 Days' Notice. Below this, all providers are well beaten by the best easy access rates.
Shawbrook are the new leaders paying 4.06%, to move ahead of Barclays at 4%. Castle Trust Bank increased their rate to 3.96% this morning to move up to third to move ahead of a trio at 3.95%. Virgin Money (who also offer a massive 4.25% to existing current account holders) remain there but have been joined by Close Brothers and Gatehouse Bank, who both moved up to 3.95% last week. This moves them ahead of UBL Bank at 3.91% and Coventry Building Society and Tesco Bank at 3.90%
Shawbrook also lead the way on 2 Year with a best buy 4.16%. Paragon Bank and Close Brothers are a fraction behind at 4.15%, ahead of previous leaders Virgin Money at 4.11%. Gatehouse Bank (4.10%) complete the top five ahead of a four way tie at 4% with Coventry Building Society, Leeds Building Society, Secure Trust and Skipton Building Society are locked together.
Gatehouse Bank have been joined by Close Brothers to tie for top spot at 4.20%. The are ahead of Paragon Bank at 4.15% and UBL Bank at 4.11%. State Bank of India (4.10%) and Leeds Building Society (4.05%) are the only other providers paying more than 4% with Aldermore Bank and Ford Money completing the top eight.
Gatehouse Bank continue to lead the way at 4.20% but Paragon Bank (4.15%) have moved ahead of UBL who are paying 4.11% in third. Secure Trust Bank and West Brom Building Society are at 4% with all other providers below this mark.
Moneybox remain outright top at 3.50%. The Moneybox rate does include a 0.75% bonus for 12 months. There's a new entry in second place though with Bath Building Society paying 3.19% on their Lifetime ISA. Nude Finance are third at 3% but their rate comes with a £2 monthly fee. Beehive Money are next with a straight 2.75% with Paragon Bank and Newcastle Building Society close behind at 2.50%. Skipton are the laggards at 2.25%.