Close Brothers Savings has launched a new fixed ISA account paying an interest rate of 5.65 percent, earning an “excellent” Moneyfacts rating.
The account is aimed at savers with more sizeable sums to invest as it requires a minimum deposit of £10,000 to open.
However, sizeable returns can be expected. To give an example of the interest the pot can amass at its current rate, a £10,000 deposit is estimated to earn £565 over the course of a year.
Interest accrues daily and is paid annually and at the maturity of the account and early withdrawals will be charged a penalty. This means savers should be comfortable with leaving the money in the account without needing to dip in.
Commenting on the deal, Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, said: “This week, Close Brothers Savings has launched a new one-year fixed rate cash ISA.
“This account pays an attractive 5.65 percent, taking a position within the top 10 when compared to other fixed ISAs of a similar term and may attract savers who are prepared to lock away their cash for a guaranteed return.”
However, Ms Eastell noted: “Earlier access is permitted subject to 90 days’ loss of interest and account closure.
“Savers will need £10,000 to invest but will be glad to know that they can make further additions for 10 days from account opening. Overall, the deal earns an Excellent Moneyfacts product rating.”
But while Close Brothers Savings may be offering a more appealing deal, it isn’t quite topping the table. For savers with a smaller deposit to invest, Virgin Money’s One Year Fixed Rate Cash ISA Exclusive (Issue Six) is currently taking the lead with an Annual Equivalent Rate (AER) of 5.85 percent.
There is no minimum investment amount to get started and interest is calculated daily and applied at maturity, which falls on September 30, 2024.
Withdrawals are permitted but will be subject to a charge equivalent to 60 days’ loss of interest on the amount withdrawn.
People must also have a current account with Virgin Money, which was opened on or after December 4, 2019. Savers also qualify if they originally opened their current account with Clydesdale Bank, Yorkshire Bank, or B such as a Signature Current Account.
Falling just behind is OakNorth Bank’s Fixed Rate Cash ISA offering an AER 5.8 percent. The account can be opened with just £1 and interest is paid monthly.
Withdrawals are also permitted, however, the amount will be subject to a charge equivalent to 90 days’ loss of interest.
