How to get a 3% cash Isa rate

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Savvy savers who can put away their money for five years can now reap the rewards with a 3% interest rate.

Both Skipton and Newcastle building societies are offering five-year fixed-rate cash Isas paying 3%.

The Skipton Building Society 5 Year Fixed Rate Isa to 15/04/2019 has a minimum deposit of £500 and transfers in are accepted from other cash Isa providers.

Withdrawals are not permitted during the term and if the account is closed during the five-year period, there is a penalty of 240 days' loss of interest.

The account can be opened and managed in branch, online and by post. But the 3% rate does not include an introductory bonus and up to £1 million can be saved in the account.

Meanwhile, the Newcastle Building Society: Member ISA Issue 10 product also has a minimum deposit of £500.

Unlike the Skipton account, it can only be opened and managed in branch or by post. There is no online access or phone service available.

Withdrawals are permitted subject to a penalty of 120 days' loss of interest. Transfers in are accepted and the maximum deposit is £250,000.

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