Savings update: cash Isa rates stagnant in run up to end of tax year

Published by Sylvia Morris on 08 March 2016.
Last updated on 08 March 2016

There is no sign of cash Isa rates improving in the run-up to the end of the tax year on 5 April.

Traditionally banks and building societies edge up rates on Isas at this time of year, to entice savers looking to use their allowance. But this year has met with a deafening silence.

Those looking to use their £15,240 cash Isa allowance for this year can earn 1.41% at best on easy-access accounts, through Virgin Money. Post Office pays 1.4% but this includes a bonus for the first 18 months, after which your rate drops to 0.65%. It also only allows two withdrawals a year. 

On fixed-rate cash Isas the best you can do is 1.5% for one year with Virgin Money and Aldermore Bank. TSB pays 1.8% for two years.

On taxable fixed-rate bonds, the top one-year deal comes from Swedish-owned Ikano Bank at 1.9% before tax (1.52% after) or 1.76% (1.41%) from Charter Savings Bank.

See our Top Savings and Top Cash ISAs articles for the best buys

For two years you can earn 2.15% (1.72%) with RCI Bank or Ikano Bank, or 2% (1.6%) with United Trust and Paragon banks.

The best easy-access deal is the online RCI Bank Freedom account at 1.55% (1.24%). Virgin Money Defined Access pays 1.31% (1.05%), but you are limited to three withdrawals a year.

Shawbrook Bank Easy Access 3 offers 1.3% (1.04%) with no withdrawal restrictions.

See our top savings and top cash Isas articles for the latest best buys.  

Leave a comment