Shawbrook Bank launches new market leading cash Isa paying 4.63% 

Shawbrook Bank has launched a new market-leading Isa in cash – paying 4.63 percent for its one-year fixed-rate Isa bond.

It also released an easily accessible cash Isa yesterday that pays a top 3.78 percent.

Last month, the Bank of England raised its base rate to 4.5 percent, the highest rate in 14 years. It will meet again next Thursday.

But despite the increase, the High Street banks have been slow to follow the lead in raising rates on Money Isas or other savings accounts.

Rachel Springall, a financial expert at interest rate checker Moneyfactscompare, says: ‘As is often the case, it’s the so-called challenger banks that are leading the way by offering the best rates – and this new deal from Shawbrook hopefully won’t be the last. It indicates that the base interest rate is not expected to fall suddenly.’

Shawbrook’s one-year Isa bond comes with a minimum balance requirement of £1,000. It is followed by UBL and OakNorth Bank – both paying 4.62 percent.

Those who prefer the freedom to move in and out of their Isa savings throughout the year can opt for the easily accessible Shawbrook Isa which pays 3.78 percent. That also requires a minimum balance of £1,000.

Leeds Building Society has a limited edition online access Isa pays interest at 3.75 percent. It is followed by Charter Savings Bank’s easily accessible cash Isa at 3.65 percent.

Savers can put as much as £20,000 a year into an Isa – invest it all in cash or stocks and shares, or split it between the two.

Experts predict that key interest rates could remain stubbornly high in the coming months as the Bank of England tries to keep inflation under control.

The most recent consumer price index for April showed that retail prices rose by 8.7 percent.

Check out the best Isa cash rates in our savings tables