The two-year fixed-rate Cash E-ISA from Virgin Money is one of the few savings accounts to be higher than the current base rate.
As it is only available for a limited period of time, the savings product has a notice period which finishes on August 24, 2025.
It has a minimum operating balance of £1 and a maximum balance which is the ISA allowance, currently £20,000.
Accessing to the savings account is permitted but savers will be subject to a 90-day loss of interest penalty.
Further additions to the ISA are allowed for 30 days from the Virgin Money savings product being opened.
Transfers in and out of the account are permitted, but any withdrawals will also lead to a loss of interest penalty for 90 days.
Customers of Virgin Money can open and manage their accounts online through the bank’s website.
It should be noted that savers need to be at least 16 years of age to open this ISA account.
Rachel Springall, a finance expert at Moneyfactscompare.co.uk, broke down why this product is an “attractive” choice.
She explained: “Virgin Money has changed the issue numbers and increased the rates on its Fixed Rate Cash E-ISAs, including its two-year deal.
“The deal now pays a rate of 5.61 percent yearly and secures a prominent place in its sector. Investors who want to utilise their ISA allowance and are happy to lock their cash away for two years may then find this an attractive choice.
“Savers will also find a monthly interest option is available that pays 5.47 percent gross, which may appeal to those looking to supplement their income. Overall, this deal earns an Excellent Moneyfacts product rating.”