Cash ISA rates rise ahead of ISA season

Caitlyn Eastell, Apprentice Press & PR Assistant 01603 476169 Email Caitlyn

Cash ISA rates rise ahead of ISA season

There’s positive news for savers as many leading savings rates have witnessed increases, but they should act fast. Moneyfactscompare.co.uk reveals the top rate deals available to those searching for a competitive return.

Cash ISA rates rise ahead of ISA season

The Consumer Price Index (CPI) fell to 2.5% during December, from 2.6% in November.
There are currently 1,597 savings accounts that beat inflation* (216 easy access, 181 notice accounts, 192 variable rate ISAs, 313 fixed rate ISAs and 695 fixed rate bonds).
The Bank of England’s modal projection rate for inflation during Q4 2025 is 2.7%.
In January 2024, there were 967 deals that could beat 4.0% (December 2023 CPI) and in January 2022, there were no deals that could beat 10.5% (December 2022 CPI).

The Consumer Price Index (CPI) fell to 2.5% during December, from 2.6% in November.
There are currently 1,597 savings accounts that beat inflation* (216 easy access, 181 notice accounts, 192 variable rate ISAs, 313 fixed rate ISAs and 695 fixed rate bonds).
The Bank of England’s modal projection rate for inflation during Q4 2025 is 2.7%.
In January 2024, there were 967 deals that could beat 4.0% (December 2023 CPI) and in January 2022, there were no deals that could beat 10.5% (December 2022 CPI).

Savings market analysis
Top savings deals at £10,000 gross	18-Jan-23	17-Jan-24	18-Dec-24	Today
Easy access account	HSBC – 2.96%	Ulster Bank – 5.20%	Atom Bank – 4.75%	Chase – 4.89%
Notice account	Hinckley & Rugby BS – 3.60% (120-day)	FirstSave – 5.40% (90-Day)	RCI Bank UK – 4.90% (95-day)	BLME – 4.85% (90-day)
One-year fixed rate bond	Habib Bank Zurich plc – 4.33%	SmartSave – 5.31%	Al Rayan Bank (Raisin UK) – 4.80%**	Vida Savings – 4.77%
Two-year fixed rate bond	FirstSave – 4.70%	Union Bank of India (UK) Ltd – 5.15%	Castle Trust Bank – 4.64%	Atom Bank – 4.70%
Three-year fixed rate bond	Investec Bank plc (Raisin UK) – 4.71% (payable on maturity)	Al-Rayan Bank – 4.86%**	Hodge Bank – 4.62%	SmartSave– 4.62%
Four-year fixed rate bond	UBL UK – 4.53% (payable on maturity)	Bank of Ceylon (UK) Ltd (Raisin UK) – 4.55% (payable on maturity)	UBL UK – 4.54% (payable on maturity)	UBL UK – 4.54% (payable on maturity)
Five-year fixed rate bond	UBL UK – 4.63% (payable on maturity)	UBL UK – 4.64% (payable on maturity)	UBL UK – 4.64% (payable on maturity)	SmartSave – 4.78%
**Islamic bank, pays an expected profit rate. Top rates exclude deals with restrictive criteria. Notice accounts exclude those over 180 days. Source: Moneyfactscompare.co.uk

ISA market analysis
Top savings deals at £10,000 gross	18-Jan-23	17-Jan-24	18-Dec-24	Today
Easy access ISA	Virgin Money – 3.00%	Moneybox – 5.09% (includes bonus)	Moneybox – 4.92%	Moneybox – 5.00%
Notice ISA	Mansfield BS – 3.00% (180-day)	Chorley Building Society – 5.05% (150-day)	West Brom BS – 4.60% (60-day)	Tipton & Coseley – 4.65% (60-day)
One-year fixed rate ISA	Barclays Bank – 4.00%	Virgin Money – 5.25%	Castle Trust Bank – 4.52%	United Trust Bank – 4.54%
Two-year fixed rate ISA	Virgin Money – 4.11%	Close Brothers Savings – 4.75%	Hodge Bank – 4.40%	Castle Trust Bank – 4.43%
Three-year fixed rate ISA	UBL UK – 4.43% (payable on maturity)	UBL UK – 4.61% (payable on maturity)	UBL UK – 4.55% (payable on maturity)	UBL UK – 4.56% (payable on maturity)
Four-year fixed rate ISA	Gatehouse Bank – 4.20%**	UBL UK – 4.54% (payable on maturity)	UBL UK – 4.30% (payable on maturity)	UBL UK – 4.30% (payable on maturity)
Five-year fixed rate ISA	Hinckley & Rugby BS – 4.25%	UBL UK – 4.64% (payable on maturity)	UBL UK – 4.53% (payable on maturity)	UBL UK – 4.54% (payable on maturity)
**Islamic bank, pays an expected profit rate. Inflation announcement dates. Top rates exclude deals with restrictive criteria. Notice ISAs exclude those over 180 days. Source: Moneyfactscompare.co.uk

Savings market analysis
Top savings deals at £10,000 gross	18-Jan-23	17-Jan-24	18-Dec-24	Today
Easy access account	HSBC – 2.96%	Ulster Bank – 5.20%	Atom Bank – 4.75%	Chase – 4.89%
Notice account	Hinckley & Rugby BS – 3.60% (120-day)	FirstSave – 5.40% (90-Day)	RCI Bank UK – 4.90% (95-day)	BLME – 4.85% (90-day)
One-year fixed rate bond	Habib Bank Zurich plc – 4.33%	SmartSave – 5.31%	Al Rayan Bank (Raisin UK) – 4.80%**	Vida Savings – 4.77%
Two-year fixed rate bond	FirstSave – 4.70%	Union Bank of India (UK) Ltd – 5.15%	Castle Trust Bank – 4.64%	Atom Bank – 4.70%
Three-year fixed rate bond	Investec Bank plc (Raisin UK) – 4.71% (payable on maturity)	Al-Rayan Bank – 4.86%**	Hodge Bank – 4.62%	SmartSave– 4.62%
Four-year fixed rate bond	UBL UK – 4.53% (payable on maturity)	Bank of Ceylon (UK) Ltd (Raisin UK) – 4.55% (payable on maturity)	UBL UK – 4.54% (payable on maturity)	UBL UK – 4.54% (payable on maturity)
Five-year fixed rate bond	UBL UK – 4.63% (payable on maturity)	UBL UK – 4.64% (payable on maturity)	UBL UK – 4.64% (payable on maturity)	SmartSave – 4.78%
**Islamic bank, pays an expected profit rate. Top rates exclude deals with restrictive criteria. Notice accounts exclude those over 180 days. Source: Moneyfactscompare.co.uk

ISA market analysis
Top savings deals at £10,000 gross	18-Jan-23	17-Jan-24	18-Dec-24	Today
Easy access ISA	Virgin Money – 3.00%	Moneybox – 5.09% (includes bonus)	Moneybox – 4.92%	Moneybox – 5.00%
Notice ISA	Mansfield BS – 3.00% (180-day)	Chorley Building Society – 5.05% (150-day)	West Brom BS – 4.60% (60-day)	Tipton & Coseley – 4.65% (60-day)
One-year fixed rate ISA	Barclays Bank – 4.00%	Virgin Money – 5.25%	Castle Trust Bank – 4.52%	United Trust Bank – 4.54%
Two-year fixed rate ISA	Virgin Money – 4.11%	Close Brothers Savings – 4.75%	Hodge Bank – 4.40%	Castle Trust Bank – 4.43%
Three-year fixed rate ISA	UBL UK – 4.43% (payable on maturity)	UBL UK – 4.61% (payable on maturity)	UBL UK – 4.55% (payable on maturity)	UBL UK – 4.56% (payable on maturity)
Four-year fixed rate ISA	Gatehouse Bank – 4.20%**	UBL UK – 4.54% (payable on maturity)	UBL UK – 4.30% (payable on maturity)	UBL UK – 4.30% (payable on maturity)
Five-year fixed rate ISA	Hinckley & Rugby BS – 4.25%	UBL UK – 4.64% (payable on maturity)	UBL UK – 4.53% (payable on maturity)	UBL UK – 4.54% (payable on maturity)
**Islamic bank, pays an expected profit rate. Inflation announcement dates. Top rates exclude deals with restrictive criteria. Notice ISAs exclude those over 180 days. Source: Moneyfactscompare.co.uk

Caitlyn Eastell, Spokesperson at Moneyfactscompare.co.uk, said:

“In the run-up to ISA season Cash ISAs have seen rate increases across the board, with the top four-year fixed ISA being the exception. It would be wise to assume that competition in this area could increase in the coming months as the new tax-year approaches. Savers who have not yet made the most out of their tax-free savings would be sensible to ensure that they use any remaining balances, otherwise they may lose out. Easy access ISAs pay as much as 5%, which is positive news for those looking to maximise their returns in the short-term. However, savers could feel locking away their cash may become a more appealing option especially as there are expectations for the Bank of England to reduce interest rates.

“Comparatively, the leading one-year fixed bond saw a small cut whereas the leading five-year bond increased since the previous inflation announcement, showcasing the shortening gap between shorter- and longer-term savings. But a long-lasting return to a more ‘traditional’ savings market remains in the distant future. Easy access accounts stand to be the most improved month-on-month, with the top rate observing a 0.14% rise. As a result, the margin between easy access and notice accounts is now only minor, so savers currently tied to a notice account may not be benefitting from higher cash returns compared to its instant access counterpart. It remains to be seen how long this will be the case.

“To avoid disappointment, savers would be wise to secure any enticing deals before they disappear. If consumers are unsure which account is best suited to their needs, they should seek independent advice in the first instance and carefully consider any opening restrictions.”

*Data note: Please note that these savings product numbers include deals that are available to UK residents (easy access accounts, notice accounts, fixed rate bonds, variable Cash ISAs and fixed Cash ISAs) and exclude regular savers, children’s savers, variable rate fixed term bonds or ISAs, JISAs and LISAs, based on a £10,000 deposit, gross rates. Higher rates may be available for other levels of deposit.

Caitlyn Eastell, Spokesperson at Moneyfactscompare.co.uk, said:

Notes to editors

Pioneering financial comparison technology for over 35 years.

Moneyfacts Group plc is the UK’s leading provider of retail financial product data. Used by virtually every bank and building society in the UK, and supplied to the Bank of England, Financial Conduct Authority, Financial Ombudsman Service, HM Treasury, Prudential Regulatory Authority and UK Finance.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, business banking, life, pension and investment products in the UK.

Moneyfactscompare.co.uk is the financial product price comparison site, launched as Moneyfacts.co.uk in 2000 and rebranded to Moneyfactscompare.co.uk in 2023, which helps consumers compare thousands of financial products, including credit cards, savings, mortgages and many more. Unlike other comparison sites, Moneyfactscompare.co.uk shows whole of market data regardless of commercial bias, showing consumers a true picture of the best products based on the criteria they select.

We hope you find this press release insightful. We would appreciate a link back to Moneyfactscompare.co.uk if you decide to source this information.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

Notes to editors

Pioneering financial comparison technology for over 35 years.

Our expert research team monitors the thousands of mortgages, savings, credit card, personal loan, business banking, life, pension and investment products in the UK.

We hope you find this press release insightful. We would appreciate a link back to Moneyfactscompare.co.uk if you decide to source this information.

For more information about us please see our key facts.

Broadcast

Our broadcast suite enables our finance experts to appear in-vision for television, and we regularly comment live on national and regional radio.

To arrange an interview for radio or television, please contact our press department. We have an in-house broadcast room.

If you're looking for extra comment, a chart or more information, then please give us a call. We are always more than happy to help.

Rachel Springall Press Officer / Finance Expert

01603 476210

Email Rachel

Caitlyn Eastell Apprentice Press & PR Assistant

01603 476169

Email Caitlyn

Cash ISA rates rise ahead of ISA season

Cash ISA rates rise ahead of ISA season

Cash ISA rates rise ahead of ISA season

Cash ISA rates rise ahead of ISA season

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