ISA rate rise

Raising rates and improving its position among medium-term ISAs as a result is Leeds Building Society. From a minimum deposit of £100, 3 Year Fixed Rate ISA (Issue 68) pays 1.80% yearly until 30 November 2021, with further deposits allowed until 30 November 2018 and transfers in from other providers also accepted. Unusually for a fixed account, withdrawals are allowed, albeit with 240 days’ loss of interest, with the same penalty applying should you wish to transfer to another provider. The ISA can be opened in branch, by post or online before becoming post or branch-operated.

At the same time, Leeds Building Society increased rates on its easy access ISA to pay the joint-top rate for its sector. From a minimum investment of £1,000, Limited Issue Online Access (Issue 7) now pays 1.38% on maturity (1.12.19), at which point it will become an Instant Access Cash ISA maturity account. This internet-operated deal allows transfers in and additions while the issue remains open, as well as unlimited withdrawals, with transfers out permitted on the same penalty-free basis.

Flexible regular saving

New this week and ideal for those who want to save regularly while retaining flexibility is this account from Royal Bank of Scotland. Savings Builder is an easy access regular savings account that allows unlimited access to funds and pays 1.50% on a monthly basis, provided the balance rises by at least £50 each month. No interest is payable in any month that this is not achieved, and it should be noted that 0.20% is paid on the portion of any balance over £10,000. The account, which can be opened and operated in branch, over the phone, online or by mobile app, is available to new and existing Royal Bank of Scotland current account customers.

Access this ISA

Increasing rates to take a comfortable place among similar easy access cash ISAs is this account from Sainsbury’s Bank. Cash ISA pays tiered rates of interest depending on the amount invested, with the minimum balance of £1 paying 0.75% yearly, rising to 1.26% on balances of £500 and over, making it a competitive choice for those with at least this sum to invest.

Transfers in are accepted and there are no restrictions on further deposits or withdrawals, and transfers away from this phone and internet-operated account are similarly penalty-free.

Fixed rate boost

Raising rates across its range of fixed accounts resulting in all becoming more competitive for their respective terms is Union Bank of India (UK) Ltd. Fixed Rate Deposit pays 2.02% on maturity for the one-year account, which rises to 2.27% yearly for the two-year version and 2.30% yearly for terms of three, four or five years. All bonds can be opened and operated in branch or by post from a minimum deposit of £1,000, however once open no further deposits can be made, and there is no access to funds prior to maturity.

Long-term ISA competes

Reissued this week and sitting just below the top-paying long-term cash ISAs is Coventry Building Society. From an opening deposit of just £1, Fixed Rate ISA (69) 30.11.2023 pays 2.10% yearly, with further deposits and transfers in welcome for 14 days after account opening or while the issue remains open, whichever is longer. Withdrawals are not allowed from this branch, post, phone and internet-operated account, however the ISA can be closed early or transferred out with the loss of 180 days’ interest.

Savings rate rises

Raising rates across its range of easy access and fixed rate accounts this week is Tesco Bank. Internet Saver, which must be opened online but can then be operated by phone and mobile app as well, now pays 1.40% yearly from a minimum deposit of £1. The rate includes a 0.85% bonus for 12 months, making a review of the account advisable at that time. It should be noted that although additions and withdrawals are allowed, there is a maximum daily withdrawal limit of £10,000 to non-Tesco Bank UK accounts and a £100,000 limit to Tesco Bank accounts in the customer’s own name.

Meanwhile, the one-year version of Fixed Rate Saver now pays 1.91% yearly, while the 15-month version pays 1.96% and the two-year pays 2.11%, all from a minimum of £2,000. The bonds can be opened over the phone or online and then operated by phone only, however once opened no further deposits can be made, and there is no access to funds prior to maturity. For those looking to supplement their income, monthly options of all bonds are available paying slightly reduced rates.

ISAs hold their own

Reviewing ISA rates this week resulting in its longer-term deals going top in their respective markets is United Trust Bank. From a minimum deposit of £15,000, ISA 1 Year Bond pays 1.45% yearly, while the three-year version pays 1.75%, the four-year pays a market-leading 2.10% yearly and the five-year pays 2.20% yearly, the joint-top rate for its term. The ISAs, which must be opened by post before becoming branch or postal-operated, accept transfers in, though once open no further deposits can be made. Earlier access and transfers out are permitted subject to an interest penalty.

Restriction-free Help to Buy

The top-paying Help to Buy ISA with no opening restrictions this week is from Barclays Bank. Opened in branch, over the phone or online and then operated by the same channels as well as by mobile app, this instant access ISA pays 2.55% monthly from a minimum investment of just £1.

Up to £1,200 can be deposited in the first month and then up to £200 can be paid in each month thereafter, with the Government topping up the account with a bonus of £50 for every £200 saved. It should be noted that the maximum bonus that can be achieved is £3,000, which can be applied for when savers purchase their first home.

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