What are the latest rates available within Cash ISAs (Individual Savings Accounts)?
The Mansfield Building Society offers a rate of 1.25%, however, only savers in Nottinghamshire, Derbyshire and South Yorkshire or existing members are able to take advantage of this policy, in addition to the fact that there is a 60 day waiting period in order to withdraw your money from the account.
The most recent peak in terms of Cash ISA interest being offered was in November last year when Birmingham Midshires offered an ISA that would earn you 1.45% interest, however, this account was withdrawn after only a week.
Both Paragon Bank and Leed's Building Society offer ISA policies that do not have a 60 day waiting period, however, they only offer a rate of 1.16%. These accounts have the additional benefit of online applications.
Leeds Building Society requires a minimum balance of £1,000, while Paragon only requires balances of £1 or more.
If you do not need instant access to your money, you could consider a fixed account which has the advantage of a higher level of interest. The following providers offer some of the best rates at the moment:
- Post Office 1 year ISA - 1.45%
- Aldermore 2 year ISA - 1.65%
- Charter Savings Bank 3 year ISA - 1.86%
- United Trust Bank 5 year ISA - 2.2%
You can access funds from the products mentioned above before the end of the term, however, penalties will apply.
Atom Bank offers 1.8% interest for those who are willing to leave their funds in the account for a year without accessing any of it, which is more than any cash ISA of equivalent length.
Remember that basic rate taxpayers can earn up to £1,000 and higher rate taxpayers can earn up to £500 in interest each year without paying tax due to the advent of the personal savings allowance in April 2016.
A cash buffer is an integral part of personal financial planning. Once you have this in place, you can ensure any additional funds are used to build your future financial wealth.
Contact Westminster Wealth Management today and one of our skilled advisers can construct a financial plan for you that will enable you to meet your financial goals.
The value of investments and income from them may go down as well as up and you may not get back the original amount invested.
New top variable rate cash Isa pays 1.25pc