Secure Trust Bank has launched a new three-year fixed cash ISA paying in AER of 4.26 percent, earning an “excellent” Moneyfacts rating.
The account can be opened with a minimum deposit of £1,000 and interest is applied to the balance annually.
Commenting on the deal, Rachel Springall, a finance Expert at Moneyfactscompare.co.uk, said: “Secure Trust Bank has launched a new Three Year Fixed Rate Cash ISA this week, which pays 4.26 percent.
“The deal still sits in a competitive position within its sector and may well attract savers who are prepared to lock away their cash for a guaranteed return over the next three years.
“Savers need £1,000 to invest but they can also make transfers in from cash ISAs. Overall, the deal earns an Excellent Moneyfacts product rating.”
Savers must be aged 18 and over and partial withdrawals are not allowed. If an account holder needs to access their funds before maturity on February 15, 2027, the account will need to be closed and an early access charge of 270 days’ interest will be applied.
But while Secure Trust Bank may be offering a competitive deal, it isn’t currently topping the board for three-year fixed ISAs. Close Brothers Savings is offering an Annual Equivalent Rate (AER) of 4.5 percent.
The account can be opened with a minimum deposit of £10,000 and interest is paid annually. Savers must be aged 18 and over early withdrawals will result in account closure and will be subject to a charge equivalent to 270 days’ interest.
For savers with slightly smaller deposits to invest, UBL UK’s Three Year Fixed Rate Cash ISA falls just behind with an AER of 4.41 percent.
The account can be opened with £2,000 and interest is paid on maturity. Savers must be aged 18 and over and early access to this account will also be subject to account closure and a charge equivalent to 270 days’ interest.
United Trust Bank and Castle Trust Bank are also offering AERs of 4.35 percent and 4.3 percent.
New research by Tesco Bank shows a third (32 percent) of Britons have increased their savings in the last six months, rising by an average of £1,540. Meanwhile, 29 percent believe their savings will grow further in the next six months.
However, for some there are concerns about how much they’ll be able to add to savings pots with two in five (40 percent) saying it’s unlikely their savings will grow in the next six months, highlighting the ongoing impact of the cost of living on people’s finances.
Ban Mahsoub, spend and save director at Tesco Bank, commented: “Setting new financial objectives means taking control of our finances.
“Many of us want to feel more confident, to be able to talk about our financial goals with friends and family and to feel financially empowered. Now is the time to channel that optimism into learning more about managing our money.
“Even simple steps like getting to grips with budgeting, consolidating your debts, or shopping around for the best savings accounts can put you in a better position to reach any money goals you may be setting.”
How many ISAs can I have?
People can invest in four types of ISA – cash ISAs, stocks and shares ISAs, innovative finance ISAs and lifetime ISAs. They can have as many ISAs as they like, as long as they meet eligibility requirements.
However, Liz Hunter, director at Money Expert previously told Express.co.uk: “You can only pay into one of each type of ISA in a single tax year. For example, you could pay into a Cash ISA and a Stocks and Shares ISA in the same tax year, but you couldn’t pay into two different Cash ISAs in the same tax year.”
Ms Hunter added: “You can’t pay in more than your overall ISA allowance into all of your ISAs combined. The ISA allowance for 2023/24 is £20,000. As for a Lifetime ISA, you can pay in a maximum of £4,000 per tax year, which also counts towards your £20,000 annual limit.”
