With the new ISA season well underway, those hoping to invest will want to ensure they’re opting into the savings product offering the best deal.
Virgin Money is currently taking the top spot for three-year fixed cash ISAs with an Annual Equivalent Rate (AER) of 4.37 percent, and savers can get started with just £1.
Cash ISAs are a popular savings option as they come with additional benefits, such as enabling savers’ money to grow without having to pay tax on the interest above the Personal Savings Allowance (PSA).
These accounts also typically offer some of the highest interest rates on the market, but they can come with a few more restrictions, like penalty charges for early access or transfers.
Cash ISAs that offer a fixed rate of interest also help add a layer of certainty to savings. It means the bank or building society cannot change the interest rate during the term, which works well for account holders hoping to save long-term.
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Virgin Money’s Three Year Fixed Rate Cash E-ISA (Issue 575) can be opened with a minimum deposit of £1 and interest can be paid either monthly or annually. Annual interest is paid on August 5, while monthly interest is paid on the last day of the month.
Withdrawals from this account are permitted but money cannot be put back in. Any withdrawals made within the fixed rate period are subject to a charge equivalent to 120 days’ loss of interest on the amount withdrawn.
Only one account can be opened per UK resident and they must be aged over 16. Savers with Virgin Money can also have access to special deals across the wider Virgin Group that can help people save on things like everyday essentials, as well as bigger things like days out and holidays.
But while the Virgin Money Three Year Fixed Rate Cash ISA tops the leaderboard with the highest returns, the competition isn’t too far behind, according to moneyfactscompare.co.uk. Secure Trust Bank is currently offering an AER of 4.35 percent.
The account can be opened with a minimum deposit of £1,000 and interest is calculated daily and paid on December 31 and on maturity.
Savers must be 18 or over and be a UK resident and have a valid National Insurance number to apply.
Partial withdrawals are not allowed and if the account is closed before maturity on May 29, 2026, an ‘early access charge’ of 270 days’ interest will be applied.
Matching this AER of 4.35 percent is Coventry Building Society’s Fixed Rate ISA (217).
Savers must be aged 16 or over and a UK resident and the account can be opened online, in a branch or by post with a minimum deposit of £1.
Interest is calculated daily and paid annually on May 31, and savers can choose whether it be paid into this account or another suitable account.
Like the other accounts, people can close or transfer the ISA before maturity on May 31, 2025, but a charge equivalent to 180 days’ interest on the account balance will be applied.
