Fierce competition has flared up again between banks, building societies and investment platforms offering cash Isas, with several launching new offers in recent days to tempt savers.
Savings rates have been falling for weeks, so it was a pleasant surprise to see a new batch of eye-catching deals appear this past week.
They don’t all show up in my Best Buy tables because they come with strings attached, meaning they’re not the best choice for all savers.
New deals: Savings rates have been falling for weeks, so it was a pleasant surprise to see a new batch of eye-catching deals popping up this past week
But if you’re aware of – and willing to abide by – their terms and conditions, they can provide a good opportunity to grow your money.
One of the most attractive new deals launched is Coventry Building Society’s new Four Access Isa (Online) 2, which pays 4.8 per cent.
It doesn’t show up in my Best Buy table because it’s not a really easy-to-access account. You can make up to four free withdrawals per year, rather than dipping in and out as needed.
But you can enjoy a very competitive rate. If you’re happy with going through an app, Trading 212 pays an even higher 5.1 per cent on an easy-to-access Isa.
Skipton BS’s new Base Rate Tracker pays 4.65 percent.
If you choose this account, the rate is not fixed, but you always know where you stand.
This is because it follows the Bank of England’s base rate by always paying only 0.35 percentage points below it.
However, there is one catch: it only follows the base rate for one year. Your money will then be transferred to another easily accessible Isa.
The association only pays 3.55 per cent on its Cash Isa Saver, so make sure you set a one-year reminder if you do close an account.
The best fixed rate Isas are just above 4.5 per cent for a year, or at 4.4 per cent for two years.
These fixed interest rates may be lower than those offered before the Bank of England’s change in the base rate from 5.25 percent to 5 percent in August, but could prove good value if the base rate falls further.
The highest one-year interest rate is 4.56 percent compared to Aldermore, which launched today.
Some 2.1 million savers are expected to pay tax on their interest this tax year, according to a Freedom of Information request from HM Revenue & Customs from investment platform AJ Bell.
You can put up to £20,000 into Isas tax-free each tax year – and in the case of cash Isas, you can spread it across fixed rates and easy access across different providers.
Sy.morris@dailymail.co.uk
See the best cash Isa rates in our savings tables