ISA round up - 21st August
20/08/2023
Easy access rates increased further with two providers paying 4.50% following Paragon's increase this morning. We expect there's a little more to come here too, and rates will nudge higher as we get in to September ahead of the next Base Rate decision on 21st September. Fixed rates are holding up but there's some signs of weakness with 3 and 5 Year best buys being removed last week and some cuts to 1 Year rates. We don't expect wholesale reductions here but think rates are probably as high as they are going to go on fixed ISAs for the time being. Here's our round up of the best buys and key changes in the Individual Savings Account markets:
Two Double Access Accounts lead the way - Newcastle Building Society and Paragon Bank both paying 4.50% on their limited access accounts. They move ahead of last week's leaders, Shawbrook, who pay a straight forward 4.43%. Cynergy Bank remain at 4.40% with Coventry Building Society just behind paying 4.35% on their Six Access account which, as the names suggests, permits six withdrawals before an interest charge for further access. Charter Savings, Kent Reliance, Leeds Building Society and Chorley Building Society all pay 4.30% but Chorley only permit two withdrawals per annum, or the rate is cut to 1.95%.
Loughborough Building Society still lead the way paying 5% for 180 Days Notice and 4.75% for 120 Day Notice. Teacher's Building Society offer 4.64% on 120 Day Notice and Chorley Building Society are third paying 4.30% for the same period - but their easy access pays the same rate so this looks the better option. Aldermore's 30 Day Notice pays 4.25% but everything below this is beaten by several easy access ISA rates so is not worthy of consideration.
UBL Bank lead the way with a best buy 5.77% ahead of Charter Savings paying 5.72%. Aldermore Bank pay 5.71% to share third alongside Shawbrook Bank, with Kent Reliance and Close Brothers just behind at 5.70%. Hodge pay 5.67% and Virgin Money are at 5.61%, after they cut their rate by 0.15% last week.
UBL Bank are the new best buy paying 5.75% as they top both 1 and 2 Year ISAs. Charter Savings are second offering 5.73% with Kent Reliance just behind at 5.71%. Three providers pay 5.65% - United Trust Bank, West Brom Building Society and Close Brothers - with Virgin Money at 5.62% and Aldermore Bank paying 5.61% alongside Zopa Bank.
Zopa Bank pay a top rate of 5.56%, just ahead of Close Brothers at 5.55% and United Trust Bank at the same rate. Aldermore Bank pay 5.51% alongside Shawbrook with Hodge and Principality Building Society both paying 5.50%.
Zopa Bank pay a best buy 5.26% ahead of Close Brothers and United Trust Bank at 5.25% with Shawbrook at 5.22%. Paragon Bank pay 5.20% ahead of Hodge at 5.15%. UBL Bank at 5.01% are the only other provider paying more than 5%.
Moneybox are the best buy paying 4% but their rate does include a 0.75% bonus for 12 months. Nude Finance pay 3.80% but their rate comes with a £2 monthly fee. Bath Building Society are at 3.74% ahead of Beehive Money at 3.30%. Skipton Building Society increased their rate to 3.25% last week to move clear of Newcastle Building Society at 3% with Paragon still only paying 2.50%.