ISA round up - 3rd January
It has been a quiet Christmas period in the ISA market with few changes. As we predicted last year, State Bank of India have cut their 1 and 2 Year rates and it is likely the 3 and 5 Year will follow this month, particularly considering the gap between them and rivals. We expect a quiet week ahead but there's likely to be changes to pricing later this week and early next week, as providers return from the Christmas holidays and respond to last month's Base Rate increase. Here's our round up of the best buys and key changes in the Individual Savings Account markets:
Virgin Money still lead the way at 3%. Although this account is only available to Virgin Money current account holders, it is possible to switch or open a new current account with them to get this rate. Given that it beats all easy access rates, even on taxable accounts, that may be worth doing for many savers - particularly those with larger balances. There's a big drop to second where Harpdenden Building Society pay 2.60% on their triple access ISA. There's a four way tie for third place with Scottish Building Society and Cynergy Bank pay 2.50% with no restrictions. Principality Building Society pay the same rate although their rate includes a 0.40% bonus for 12 months. Nationwide also pay 2.50% on their Triple Access ISA. Kent Reliance pay 2.43% as does Family Building Society with their market tracker ISA - where the rate is reviewed quarterly in line with the market. Sainsburys and Chorley Building Society complete the top 10, both paying 2.40%.
Mansfield Building Society lead the way paying 3% on 180 Day Notice and 2.50% on 90 Day. Aldermore Bank are next paying 2.80% on just 30 Days' Notice. Hinckley & Rugby pay 2.70% on their 90 Day Notice and Melton Building Society increase their 100 Day Notice rate to 2.65%. Below this, all providers are beaten by the best easy access rates.
Barclays pay a market leading 4% on their 1 Year Flexible ISA - the first time they have topped our charts. Long term leader, UBL, drop to second paying 3.81%. Virgin Money are third at 3.79% just ahead of Shawbrook Bank at 3.78%. Gatehouse Bank complete the top five at 3.70%, ahead of OakNorth at 3.68%.
State Bank of India cut a huge 0.60% off their best buy rate which sees them drop to joint 3rd. They are replaced by Virgin paying 4.11%, which is just enough to beat Barclays 4.10% to second spot. Secure Trust Bank share third with State Bank of India at 4.05%. Scottish Building Society complete the top five at 4.01% ahead of six providers at 4% including Paragon Bank, West Brom Building Society, Hodge and Charter Savings Bank.
State Bank of India are still paying 4.65% to top the charts but with their 1 and 2 Year ISA rates cut before Christmas it must only be a matter of time before this one gets cut too. There's a big drop to UBL Bank in second paying 4.25%. Gatehouse pay 4.20% to take third with Ford Money next at 4.15% and Castle Trust Bank at 4.10% completing the top five.
State Bank of India also top 5 Year at 4.65% with a big drop then to West Brom Building Society at 4.25%. Gatehouse Bank are third at 4.20%, ahead of Secure Trust Bank at 4.10% and Paragon Bank at 4.05%. Family Building Society and Principality Building Society pay 4% with all other providers below this level.
There's no change to the Lifetime ISA tables. Moneybox remain outright top at 3.50%. The Moneybox rate does include a 0.75% bonus for 12 months. Nude Finance are second at 3% but their rate comes with a £2 monthly fee. Beehive Money are third with a straight 2.30%. Skipton Building Society are fourth at 1.75%, ahead of Paragon at 1.60%, with Newcastle Building Society bringing up the rear at 1.50%. We expect to see movement this month in response to December's Base Rate change with only Moneybox reacting so far.