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ISA rates soar for the new tax year


The 6th April heralds the start of a new tax year and this one has started with a bang for ISA savers.  The period between late February and May was historically known as ISA season but this hasn't been the case for several years as there's been an almost complete absence of interest in ISA savings from providers.  In part this has been due to very few new entrants, who have offered most of the best rates on savings over the past decade or so, being present in the ISA market.  The larger banks are sitting on substantial deposit balances as, in the low interest rate environment, many savers haven't seen the point in switching their funds for a few basis points extra so there's been little incentive for them to increase their rates. 

Several providers pulled their ISA ranges ahead of the tax year end with Aldermore, Charter Savings, Kent Reliance, Paragon, Secure Trust and Shawbrook all rejoining the market this morning.  However, rather than come back in at the same level, many have improved their rates on offer to savers.  Here's our round up of the best rates on offer:


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Sainsbury's Bank sit in top spot, having improved their rate to 0.95%.  They are closely followed by Shawbrook, who rejoined with an improved rate of 0.92%, up from a highly competitive 0.85%, which they must have expected would be enough to take the best buy position.  For those with £50,000+, Yorkshire Building Society are next with 0.82% but, for those of us with smaller savings balances, it's two building societies offering the best rates - Ecology and Melton both paying 0.80%.


Aldermore lead the way with their 30 Day Notice blitzing the competition at 0.90% - the next nearest competitor is Buckinghamshire Building Society paying 0.60%.  Savers who can lock up for longer can get 1% from Melton Building Society but will need to give 100 days notice for access.

1 Year Fixed

Gatehouse Bank went top of 1 Year yesterday, improving their rate 0.10% to 1.40%, but have been joined this morning by Shawbrook who are paying the same rate.  Kent Reliance's improved 1.34% sees them take 3rd spot with Leeds Building Society tucked in at 1.30% behind them.  There are now 16 providers paying 1% or more - it's hard to believe that there wasn't a single provider paying 1% at the end of 2021!  Aldermore led the way then at 0.96%, who now pay 1.20% 

2 Year Fixed

Gatehouse have a clear lead at the top of 2 Year with their 1.75% rate ahead of UBL's 1.71%.  Aldermore sit third paying 1.65% alongside Paragon Bank with Kent Reliance just behind at 1.64%.

3 Year Fixed

Gatehouse lead on 3 Year too with their 1.85% rate comfortably clear of UBL's 1.76%, which is just enough to fend off Aldermore's new improved rate of 1.75%, launched today.  There's a gap then to Buckinghamshire Building Society and Paragon Bank who pay 1.70%.

5 Year Fixed

Gatehouse complete a clean sweep of best buys on fixed rates with 2.10% paid for 5 Years which is substantially clear of United Trust Bank in second with 1.95%.  Buckinghamshire pay 1.90% to hold third spot ahead of Shawbrook's 1.87%.

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