Marsden Building Society has increased the interest rate on its fixed Cash ISA this week to 4.3% AER, earning an “excellent” Moneyfacts rating.
The interest, which is fixed for two years, is paid annually, and savers can launch the account with a minimum deposit of £5,000. Cash ISAs have grown in popularity over the past few years as higher interest rates drag more people into savings tax thresholds. These accounts currently allow individuals to save up to £20,000 a year tax-free. Commenting on Marsden Building Society’s new deal, Caitlyn Eastell, spokesperson at Moneyfactscompare.co.uk, said: “Marsden Building Society has increased the rate on the two-year option of its Fixed Rate Cash ISA this week, which sees it take the market-leading position.
“Savers will need to deposit at least £5,000, but further additions can be made for 14 days from the account opening, which may be a bonus for some.
“Overall, the account earns an Excellent Moneyfacts product rating.”
Withdrawals and transfers out are permitted, but they are subject to a penalty equivalent to 270 days’ interest and will result in account closure.
Savers must be aged 18 to launch the account, and all deposits up to £85,000 are protected under the Financial Services Compensation Scheme (FSCS).
What else is out there?
Placing just behind Marsden Building Society on the two-year fixed rate Cash ISA board is United Trust Bank’s Cash ISA Two Year Bond with a 4.25% Annual Equivalent Rate (AER).
Savers can launch an account with a minimum deposit of £5,000, and interest is paid on the anniversary of opening. Earlier access is subject to a 270-day loss of interest via the nominated account. However, interest can be withdrawn annually on the anniversary.
Close Brothers Savings is also offering a competitive interest rate of 4.23% AER. This account is aimed at savers with larger sums to invest, as a minimum deposit of £10,000 is required to launch the account. Earlier access is allowed only in the event of account closure and will incur a loss of 150 days’ interest.
Cynergy Bank is also offering a competitive 4.23% AER on its two-year fixed ISA. Savers can launch the account with a minimum deposit of £500, and interest is paid on the anniversary. Earlier access is allowed on closure only and will be subject to a 180-day loss of interest.
