Shawbrook Bank has raised its interest rates once again, earning another “excellent” rating from Moneyfactscompare on its fixed rate ISA deal.
Savers can open Shawbrook Bank’s One Year Fixed Rate ISA with a minimum deposit of £1,000 and interest can be paid monthly or annually.
Commenting on the deal, Rachel Springall, finance expert at Moneyfactscompare.co.uk, said: “Shawbrook Bank has increased the rate on its one-year fixed ISA this week, improving its position in the market.
“Savers searching for a guaranteed return on their cash and wishing to utilise their ISA allowance may find this a competitive choice as the deal holds a more prominent position in its sector.
“Consumers can make Cash and Stocks and Shares ISA transfers into the account, and if they so wish, access their deposit subject to a loss of interest penalty. Overall, the deal earns an Excellent Moneyfacts product rating.”
This account can be opened online by UK residents aged 18 or over and only one account is allowed per customer.
Withdrawals are permitted, however, these will be subject to a charge equivalent to 90 days’ interest if made during the specified fixed term.
But while Shawbrook Bank’s deal is particularly appealing, the competition isn’t too far behind. Virgin Money is also offering an AER of 5.71 percent on its One Year Fixed Rate Cash E-ISA (Issue 611) – and savers can get started with just £1.
The account can be opened online by UK residents aged 16 or over and interest can be paid either monthly or annually.
Savers with Virgin Money can also have access to special deals across the wider Virgin Group that can help people save on everyday essentials, as well as days out and holidays.
Similar to Shawbrook, withdrawals are permitted, however, these will be subject to a charge equivalent to 60 days’ loss of interest on the amount withdrawn.
NatWest’s One Year Fixed Rate ISA (Issue 326) places just behind with an AER of 5.7 percent.
The account can be opened by UK residents aged 16 and over online, in a branch, or by phone, with a minimum deposit of £1,000.
Interest is calculated daily and paid annually to the ISA on the first business day in April and on the maturity payment date.
However, if a saver wants to withdraw any funds before maturity on September 4, 2025, they’ll have to close the account and an Early Closure Charge will be applied.
This will either amount to the “lower of the amount of interest earned” or a charge equivalent to 90 days’ interest.