Don’t sift through 530 cash Isas to beat next week’s deadline… pick one of these, says SYLVIA MORRIS
Sifting through the 530-plus cash Isa accounts currently on sale is no easy task.
But you have only a few days left to do so if you want to find the best place for your Isa allowance of up to £20,000 for this tax year, before it disappears on April 5.
It’s easy to put the job off, so I have come up with a guide to the best deals depending on how you want to manage your account.
The good news is that cash Isas are paying around the same rate as ordinary accounts, so they should be your first port of call.
And the fact that inflation has dropped from 4 per cent to 3.4 per cent, while the Bank of England base rate stayed at 5.25 per cent last week, should bring a smile to your face.
Deadline: You only have a few days left if you want to find the best place for your Isa allowance of up to £20,000 for this tax year before it disappears on April 5
It means we can earn a better return on our money in real terms. But in order to beat inflation you need to earn more than the average easy-access Isa rate, which is 3.32 per cent according to data scrutineers Moneyfacts. And here’s how you do it.
If you are happy to open an easy-access cash Isa through an app, Chip pays 5.1 per cent on £1 or more.
Its appeal is a good rate that is linked to the Bank of England base rate. Yes, that is expected to go down later this year, and so would your rate, but at least you know that it won’t be unfairly slashed by more than the base rate, as is often the case with other easy-access accounts.
The rate is below the 5.17 per cent launched by Plum yesterday, but here you are limited to making three withdrawals a year.
Plum’s rate also includes a 0.88 percentage point bonus, which lasts only for a year so you will have to look to move your money then.
If you would prefer an online account, then go for Charter Savings Bank (5.03 per cent on a minimum £5,000), Kent Reliance (5.1 per cent on £1,000 plus) and Cynergy Bank (5 per cent on £1 plus).
Kent Reliance offers 5.1 per cent through its branches too. Next best on the High Street is the Epsom-based Family BS Market Tracker Isa at 4.86 per cent on £500 or more, followed by Swansea BS, which pays 4.25 per cent on £1 or more.
If you are fine with not making many withdrawals from your account, then Yorkshire BS Double Access Isa and Coventry BS Four Access Isa — both at 4.55 per cent on £1 plus — are possible contenders.
Keen to tie your money up for a year? You’ll get around the same rate as with easy-access accounts, but with rates expected to head south during the second half of this year you could be better off in the long run than sticking to an easy-access account.
Top rates include OakNorth (online) and Kent Reliance (online and through its branches) at 5.07 per cent.
They are closely followed by online banks Aldermore, Charter Savings Bank and Paragon, all at 5.05 per cent.
On the High Street, Leeds BS pays 4.8 per cent and West Bromwich BS 4.7 per cent. Skipton BS pays 4.75 per cent for 18 months.
Check the best cash Isa rates in our savings tables
