Coventry Building Society has increased the interest rate on it’s cash ISA from 4.90 percent to 5.05 percent.
The savings account is available for both new and existing customers.
This increase means the building society now offers the market’s highest rate for tax-efficient easy access savings.
This tax-free account can be opened with a minimum of £1 and savers can deposit up to £20,000 for the current tax-year.
The account only allows four withdrawals in a 12-month period starting from the date the account was opened.
If savers make a fifth withdrawal, they will lose 50 days worth of interest.
On the maximum deposit of £20,000 that’s almost £151.
If one can afford to forgo the flexibility of unlimited withdrawals, this is the best rate they can get on an easy-access cash ISA.
Daniel McDonald, Senior Product Manager at Coventry Building Society, said: “With healthy interest rates available across the market, and a personal savings allowance that hasn’t increased since it was introduced in 2016, there’s considerable demand from savers for tax-free savings with competitive rates of interest.
“The Four Access ISA gives savers a market-leading rate while providing the peace of mind they won’t get taxed on the interest.”
Skipton Building Society has also increased rates on their cash ISA. Previosuly savers could get 4.90 percent, however from today they can benefit from five percent on their savings.
Skipton’s account has no limit on the number of withdrawals people can make which offers more flexibly than Coventry’s account.
However it should be noted that Skipton’s account has a bonus rate for the first 12 months of one percent, so after this the rate will fall to four percent.
The cash ISA rates being boosted are a response to the demand for higher interest on tax savings.
The rise in interest rates over the last year has been good news for savers who can now get accounts paying interest over five percent.
