Shawbrook Bank has boosted its position in the cash ISA market with an interest increase to 5.58 percent on its Two Year Fixed Rate account.
The ISA, which has now earned an “excellent” rating from Moneyfactscompare.co.uk, requires a minimum deposit of £1,000 to open it and savers can opt for interest to be paid monthly or annually.
Commenting on the deal, Moneyfacts’ finance expert Rachel Springall said: “Shawbrook Bank has increased the rate on its two-year fixed ISA this week to 5.58 percent, which takes a prominent position in its sector.
“Savers who still need to use their ISA allowance and desire a guaranteed return on their cash may find this an attractive option.”
The account allows transfers in from both cash and stocks and shares ISAs, and earlier access is permitted.
But withdrawals will be subject to a 180-day loss of interest penalty, meaning savers should be happy to invest funds without dipping in until maturity to really make the most of the account.
Ms Springall added: “Those savers looking to supplement their income will also find the account offers a monthly interest option. Overall, the deal earns an Excellent Moneyfacts product rating.”
Savers must be UK residents aged 18 or over and the account be only be opened online.
But while Shawbrook Bank may be offering a more attractive deal, it isn’t currently topping the table of two-year fixed ISAs. NatWest’s Two Year Fixed Rate ISA (Issue 327) is currently taking the lead with an Annual Equivalent Rate (AER) of 5.9 percent.
The account can be opened with a minimum deposit of £1,000 and interest is calculated daily and paid annually on the first business day of April.
The account can be launched and managed via NatWest’s mobile app, online or by telephone and savers must be aged 16 or over.
Partial withdrawals are not permitted and if savers wish to do so, they’ll have to close their account and a charge will be applied.
Secure Trust Bank’s Two Year Fixed Rate Cash ISA falls just behind with an AER of 5.6 percent.
This account can also be opened with a minimum deposit of £1,000 and interest is calculated daily and paid annually on December 31.
Those who decide to close the account before it matures on August 14, 2025, will be subject to an early access charge of 180 days’ interest.
Source: Expressnews.co.uk