ISA round up - 15th May
15/05/2023
The Bank of England decision on Thursday to increase Base Rate to 4.50% is likely to help easy access ISA rates improve in the coming weeks. Previous experience is that ISA providers are usually slow to pass on increases but expect to see easy access rates tick up in the coming weeks. We expect they will move towards 3.60-3.70%. Fixed Rate ISAs are a little off their fixed rate bond counterparts so again there's scope for some increases here too - although we expect them to be limited and mainly on the short term fixed rates, rather than on 3 and 5 Year Fixed. Here's our round up of the best buys and key changes in the Individual Savings Account markets:
Paragon Bank made an end of the week move to top easy access ISA best buys. Their Triple Access account pays a top rate of 3.51% to move ahead of Cynergy Bank whose 3.50% comes without any withdrawal restrictions. Shawbrook, are third paying 3.45%. Principality Building Society increased their rate to 3.45% during the week, although this includes a 0.40% bonus for the year. The other big mover is Ford Money - up to 3.40% this morning to move alongside Leeds Building Society. There's a cluster of providers at 3.30% - Marcus and Saga's rate includes a 0.35% bonus - Newcastle Building Society's 3.30% is limited to three withdrawals, while Teacher's Building Society's is unrestricted, but they also pay 3.35% to Teachers and Education Professionals.
Hargreaves Lansdown's Active Savings are offering £100 cashback on Coventry Building Society's Limited Access ISA, which pays 3.25%, for those saving at least £10,000. This equates to a 4.25% annual return on £10,000 or 3.75% for those saving the full £20,000 ISA allowanc, which beats other returns on offer.
Furness Building Society lead the way at 3.55% on their 45 Day Notice. Skipton Building Society's 60 Day Notice is next paying 3.40%, which moves it alongside Newcastle Building Society, whose 3.40% requires 100 Days' Notice. Mansfield Building Society's 3.25% is on a huge 180 Days' Notice, although they do pay 2.85% on 95 Days. Aldermore Bank pay 3.20% for 30 Day Notice.
Shawbrook are the new leaders, paying a top rate of 4.32% to knock Virgin Money (4.31%) off top spot. Castle Trust Bank, Secure Trust, Charter Savings, Leeds Building Society and Close Brothers all pay 4.25% to share third spot. Kent Reliance are next following their small increase to 4.23%.
Shawbrook also top 2 Year, although their 4.40% is alos matched by Newcastle Building Society. Close Brothers are third paying 4.37% ahead of Virgin Money, who increased their rate to 4.36% during the week. Coventry Building Society, pay 4.35% alongside Secure Trust Bank and Charter Savings. Leeds Building Society moved up to 4.32% during the week as the top providers are separated by just a few basis points.
Virgin Money lead the way paying an improved rate of 4.41%. Shawbrook Bank are next, following their increase to 4.37% with Secure Trust Bank just behind at 4.35%. Hampshire Trust Bank, who pay 4.25%, are next alongside Leeds Building Society, who upped their rate. They are ahead of a four way tie at 4.20% - West Brom Building Society, Ford Money, Cynergy and Gatehouse Bank all paying that rate. Aldermore Bank are close behind paying 4.15%.
Gatehouse Bank continue to lead the way at 4.20% with a gap back to Principality Building Society in second, who are joined by West Brom Building Society following their increase to 4.05%. Hinckley Building Society and Secure Trust Bank both pay 4% with Shawbrook just behind at 3.95%. Hodge are next at 3.84% and United Trust Bank complete the top eight at 3.80%.
Moneybox remain outright top at 3.50%. The Moneybox rate does include a 0.75% bonus for 12 months. Nude Finance are next but their 3.30% rate comes with a £2 monthly fee. Beehive Money are third with a straight 3% with Paragon Bank and Newcastle Building Society both paying 2.50%. Skipton are the laggards at 2.30%.