Shawbrook Bank boosts interest to ‘highest-paying’ 5.78% on fixed rate cash ISA ‌ | Personal Finance | Finance newsbhunt


Shawbrook Bank offers savers a new top-paying rate on its one-year fixed ISA at 5.78 percent Annual Equivalent Rate (AER) gross.

Savers need a minimum deposit of £1,000 to invest and interest can be paid monthly or annually.

Adam Thrower, head of savings at Shawbrook, said: “We’ve seen a marked increase in the number of people saving into tax-efficient ISAs, in fact, during January – May this year, we saw a 73 percent increase versus the same period last year in new ISA accounts being opened.

“Many are now acutely aware of the impact that frozen tax thresholds are having on their savings and are looking for high-paying accounts to best protect their cash from inflation and tax.”

Mr Thrower added: “For those looking for unlimited withdrawals and easy access to their cash, our easy access account continues to be one of the highest payers at 4.93 percent AER.

“However, many savers continue to be paid poorly and the need to switch has never been greater.”

People must be aged 18 or over and permanent UK tax residents to launch and manage Shawbrook’s One-Year Fixed ISA (Issue 80), which can only be done online.

This account has a fixed term, so withdrawals can only be made without incurring any charges at the end of the fixed term, also known as ‘maturity’.

People can make withdrawals (including transferring out to other Cash ISA providers) before maturity but this will be subject to a loss of 90 days’ interest, also referred to as the early exit charge.

Up to £250,000 can be invested in the account and transfers in from other Cash ISA or Stocks and Shares ISA providers are permitted.

However, requests to transfer funds into an account from another ISA provider must be made at the same time as the initial account application by signing a transfer form, otherwise it could be refused.

But while Shawbrook may be topping the table for one-year fixed ISAs, competition isn’t too far behind. UBL UK’s One Year Fixed Rate Cash ISA is offering an AER of 5.77 percent on a minimum deposit of £2,000.

Interest is paid on maturity and an early withdrawal in full (no partial withdrawal) is allowed before the full term expires. However, an early withdrawal charge of 90 days’ gross interest will be applied.

Charter Savings Bank’s One Year Fixed Rate Cash ISA falls just behind with an AER of 5.72 percent.

A larger minimum deposit of £5,000 is required and interest is paid on the anniversary. However, similar to the other accounts, earlier access will be subject to 90 day loss of interest.


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