SAVERS can now get more for their cash as Shawbrook Bank has raised the interest on its fixed rate savings accounts to take them to the top of the tables.
The new rate of 1.91 per cent for its two-year fixed cash Isa, up from 1.65 per cent, means the account gives you the best value for your money on the market – but you have to lock away your cash for two years.
The bank has upped the interest rates on its fixed cash Isas
The account beats a similar fixed deal by Coventry Building Society, which offers savers interest of 1.9 per cent on deposits of as little as £1.
Shawbrook has also upped the interest rates on its one-year fixed deal from 1.5 per cent to 1.74 per cent, its three-year fixed deal from 1.75 per cent to 1.96 per cent, and its five-year fixed deal from 1.95 per cent to 2.13 per cent.
The one-year fixed deal by Shawbrook is market-leading, but Cynergy Bank isn’t far behind offering a slightly lower interest rate of 1.73 per cent.
If you’re happy to stash away your cash for three years, Coventry Building Society offers the best rate at 2.3 per cent, according to comparison website Moneyfacts.
But keep in mind you’ll need at least £1,000 to open any of these accounts.
If you need early access to your cash, you should also be aware of that you’ll lose out on 90 days’ worth of interest on the one-year fixed account, 180 days’ interest on the second-year account, 270 days’ interest on the three-year deal, and a whopping 360 days’ interest on five-year fixes.
An Isa lets you save cash tax-free, which means you can earn interest on savings up to £20,000 a year without facing any Government deductions.
HOW DO YOU SWITCH ISA PROVIDERS?IF you’re in the market for a new, better paying Isa, there’s one thing you shouldn’t do.Never withdraw money from your Isa account to put it into your new one – if you do it’ll lose its tax free benefits.
Instead you need to follow the simple transfer process.
Make sure that the new account you want to use accepts transfers (not all do) and then fill in the Isa transfer form with the new provider.
It will arrange for your savings to be transferred over, with the process taking no more than 15 working days.
And remember, you can only have one “active” Cash Isa per tax year.
Rachel Springall, finance expert at Moneyfacts, told The Sun: “It’s encouraging that the Isa market is showing signs of life so early on in the year.
“Shawbook Bank is one of the 25 savings providers to either increase rates or launch brand new Isas since the start of 2019.
“Clearly, providers are sowing the seeds for savers to discover market-leading returns, and as the Isa season flourishes, it will hopefully lead to increased competition and even better deals as we move closer to the new tax year.”
If you need quick, penalty-free access to your cash, an easy-access Isa may be better.
The top rate is currently 1.45 per cent from Virgin Money.
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In April 2016, the Government introduced a big shake-up to something called the Personal Savings Allowance (PSA), which means basic rate taxpayers can now earn £1,000 in interest a year tax-free – in whatever account they’re saving in.
Are you looking for an Isa? We’ve put together a round up of accounts that offer the best saving rates.
Also see our round-up of the best savings accounts for 2019.
Our top eight apps to help you save money in 2019
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