Best ISA, easy access and fixed rate savers paying interest up to 5.9%

Following the 13 consecutive Base Rate hikes since the start of last year, high street banks and building societies have been boosting interest rates across savings products to offer Britons higher returns.

Some savings accounts are now paying out some of the highest interest rates seen in decades and there are a number of different savings accounts available and suitable for a variety of circumstances.

Lucinda O’Brien, savings expert at Money.co.uk’s said: “One-year fixed-rate bonds have seen a leap forward in rates since the Bank of England’s 13th hike in a row.”

However, she noted that savers should be aware as typically, fixed term accounts encourage savers to lock their cash away without dipping in, as returns can be “worse” for those who need their savings sooner.

Ms O’Brien added that while top-rate easy access accounts are still paying interest rates “well below” the Bank of England’s Base Rate of five percent, “many current accounts are paying effectively zero percent”, meaning certain deals are offering “a far better return on any money you have” that’s currently spare and needs to be accessed quickly.

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Here are the top rate easy access, fixed rate and cash ISA accounts on offer today, according to Moneyfactscompare.co.uk.

Easy access savings

Easy access accounts are typically more flexible, as these allow savers to make payments and withdrawals with minimal restrictions and with small opening deposit requirements.

Topping the leaderboard of easy access savings accounts offering the highest interest rate is Newcastle BS’s Newcastle Base Rate Tracker (Issue One) offering an Annual Equivalent Rates (AER) of 4.3 percent. The account can be launched with a minimum deposit of £1 and interest is paid on the anniversary of opening. Up to £250,000 can be invested overall and there is no limit to the number of deposits or withdrawals.

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Fixed rate savings accounts

Fixed-rate accounts add another level of certainty to savings, as these accounts enable savers to lock in an interest rate for a set length of time. Topping the list of one-year fixes is SmartSave’s One Year Fixed Rate Saver with an AER of 5.86 percent.

The account can be opened with a minimum deposit of £10,000 and accrues daily and is paid on maturity. Up to £85,000 can be invested overall and withdrawals are not permitted.

For two-year fixes, Vanquis Bank’s Two Year Fixed Rate Bond comes out on top with an AER of 5.9 percent. The account can be opened with a minimum deposit of £1,000 and interest can be paid either annually or monthly on the anniversary date. Withdrawals are, however, not permitted throughout the course of the term.

For three-year fixes, JN Bank’s Fixed Term Savings Account tops the list with an AER of 5.88 percent. The account can be opened with a minimum deposit of £1,000 and interest is calculated daily and paid annually on the anniversary. Withdrawals are also not permitted throughout the course of the term.

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Cash ISAs

Cash ISAs are a particularly popular option for savers, as these accounts enable people’s money to grow without having to pay tax on the interest above the Personal Savings Allowance (PSA). However, some ISAs can come with a few more restrictions, like penalty charges for early access or transfers.

For those who need instant access to their cash ISA, Principality Building Society’s Online ISA tops the list with an AER of 3.8 percent. The account can be opened with a minimum deposit of £1 and withdrawals can be made at any time.

For those looking for a fixed rate, Zopa’s Smart ISA is topping the list for one-year fixed ISAs with an AER of 5.06 percent. The account can be opened with a minimum deposit of £1 and terms are flexible, meaning savers can withdraw and replace funds in the year without it impacting their annual allowance.

Coventry BS’s Fixed Rate ISA (220) tops the list for two-year fixes with an AER of 5.2 percent until September 30, 2025. The account can be opened with a minimum of £1 online, by phone, post or in the branch and will accept ISA transfers in from this and previous years. Withdrawals are permitted but a charge equivalent to 180 days’ interest on the account balance will be applied.

For three-year fixes, Zopa Smart ISA takes the lead with an AER of 5.21 percent, and the same rules for the one-year fix apply.

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