ISA: Best interest rates as deadline approaches fast – secure the top ISA deals | Personal Finance | Finance
ISA interest rates have taken somewhat of a tumble recently, a knock on effect of the Bank of England’s base rate decision in March 2020. When the central bank decided to lower its rates, many more familiar providers were impacted. While the major casualty came in the form of easy access savings accounts, other forms of saving have also been hit.
Nevertheless, this has not quelled Britons’ desire to save, and many will still be looking for the best options presenting themselves.
When it comes to the looming ISA deadline, there are a number of choices which lead the pack.
Express.co.uk spoke to Katie Brain, insight analyst at Defaqto, who offered further guidance on the options available.
Of course, some individuals may still wish to access their funds while saving tax-free, and in this instance, an easy access ISA is likely to be most appropriate.
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Chelsea Building Society, Chorley & District Building Society, Ecology Building Society, Coventry Building Society and Ford Money are all in the top interest rate offerings.
They all require a £1 minimum deposit, except for the Ecology offering with a £25 minimum initial deposit.
While rates may not look particularly advantageous, saving with a provider offers safety should the worst happen.
Many of these banks and building societies are Financial Services Compensation Scheme (FSCS) protected, meaning funds up to £85,000 are secure.
For those, however, who are perhaps looking for slightly more favourable rates, Ms Brain suggested locking away money could provide a solution.
While the difference is marginal, individuals who can afford to part with a certain amount of cash for a year could lock it away in a fixed ISA.
The top offerings at present are put forward by Ford Money, Leeds Building Society and Paragon – all offering 0.45 percent.
These accounts have withdrawal conditions of either 60 or 90 days interest penalty which are worth bearing in mind before saving.
The remainder of the one year fixed ISAs have a 0.40 percent interest rate at present, but with different criteria to bear in mind.
For savers with Hodge Bank, Leek United and Shawbrook Bank, a £1,000 initial deposit is needed, rising to £2,000 for UBL UK savers.
AA Savings, Post Office Money and M&S Bank, on the other hand, currently require a minimum initial deposit of £500.
The ISA deadline occurs on Monday, April 5, however this is a bank holiday due to Easter.
As a result, to take advantage of the £20,000 annual allowance, Britons may wish to act sooner to ensure their finances go through before the cut off date.