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Top ISA deals improve as new tax year approaches

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Rachel Springall, Press Officer
Rachel Springall, Press Officer / Finance Expert 01603 476210 Email Rachel
22/03/2023

Top ISA deals improve as new tax year approaches

Savings providers have made improvements to top ISA rates, so savers are urged to compare the latest offers as a new tax year approaches. Moneyfactscompare.co.uk reveals the top rate deals available to savers searching for a competitive return.

Top ISA deals improve as new tax year approaches

Savings providers have made improvements to top ISA rates, so savers are urged to compare the latest offers as a new tax year approaches. Moneyfactscompare.co.uk reveals the top rate deals available to savers searching for a competitive return.

  • The Consumer Price Index (CPI) rose to 10.4% during February, from 10.1% in January.
  • The number of deals able to outpace inflation has not changed since last month. There is not one standard savings account that can outpace 10.4%*.
  • The predicted rate for inflation during Q1 2024 is 3.0%.
  • In March 2022, there were no deals that could beat 6.2% (February 2022 CPI) and in March 2021, 326 deals (seven easy access accounts, 23 notice accounts, eight variable rate ISAs, 78 fixed rate ISAs and 210 fixed rate bonds) could beat 0.4% (February 2021 CPI)*.
  • The Consumer Price Index (CPI) rose to 10.4% during February, from 10.1% in January.
  • The number of deals able to outpace inflation has not changed since last month. There is not one standard savings account that can outpace 10.4%*.
  • The predicted rate for inflation during Q1 2024 is 3.0%.
  • In March 2022, there were no deals that could beat 6.2% (February 2022 CPI) and in March 2021, 326 deals (seven easy access accounts, 23 notice accounts, eight variable rate ISAs, 78 fixed rate ISAs and 210 fixed rate bonds) could beat 0.4% (February 2021 CPI)*.

Savings market analysis

Top savings deals at £10,000 gross

24-Mar-21

23-Mar-22

15-Feb-23

Today

Easy access account

Virgin Money – 0.50%

Virgin Money – 1.00%

Paragon Bank – 3.10%

Chip – 3.35%

Notice account

Charter Savings Bank – 0.65% (120-day)

Shawbrook Bank – 1.15% (120-day)

Furness BS – 3.50% (120-day)

Melton BS – 3.50% (180-day)

One-year fixed rate bond

Ahli United Bank (UK) plc (Through Raisin UK) – 0.65%

Al Rayan Bank – 1.70%**

Ahli United Bank (UK) plc (Raisin UK) – 4.20%

Al Rayan Bank – 4.43%**

Two-year fixed rate bond

QIB (UK) (Through Raisin UK) – 0.80%**

JN Bank – 1.96%

Union Bank of India (UK) Ltd – 4.35%

Al Rayan Bank – 4.55%**

Three-year fixed rate bond

BLME – 1.00%**

JN Bank – 2.11%

UBL UK – 4.43% (payable on maturity)

Al Rayan Bank – 4.60%**

Four-year fixed rate bond

BLME – 1.05%**

PCF Bank – 2.15%

UBL UK – 4.53% (payable on maturity)

UBL UK – 4.53% (payable on maturity)

Five-year fixed rate bond

Hodge Bank – 1.30%

PCF Bank – 2.30%

UBL UK – 4.63% (payable on maturity)

UBL UK – 4.63% (payable on maturity)

**Islamic bank, pays an expected profit rate. Source: Moneyfactscompare.co.uk

 

ISA market analysis

Top savings deals at £10,000 gross

24-Mar-21

23-Mar-22

15-Feb-23

Today

Easy access ISA

Al Rayan Bank – 0.60%**

Paragon Bank – 0.80%

Newcastle BS – 3.05%

Cynergy Bank – 3.20%

Notice ISA

Marsden BS – 0.55% (95-day)

Buckinghamshire BS – 0.60% (30-day)

Loughborough BS – 3.05% (120-day)

Furness BS – 3.30% (45-day)

One-year fixed rate ISA

Charter Savings Bank – 0.50%

OakNorth Bank – 1.28%

Virgin Money – 4.25%

Santander – 4.15%

Two-year fixed rate ISA

State Bank of India – 0.65%

UBL UK – 1.61% (payable on maturity)

Gatehouse Bank – 4.10%**

Santander – 4.20%

Three-year fixed rate ISA

Charter Savings Bank – 0.75%

UBL UK – 1.73% (payable on maturity)

UBL UK – 4.28% (payable on maturity)

UBL UK – 4.28% (payable on maturity)

Four-year fixed rate ISA

Hodge Bank – 0.65%

UBL UK – 1.74% (payable on maturity)

UBL UK – 4.37% (payable on maturity)

UBL UK – 4.37% (payable on maturity)

Five-year fixed rate ISA

Shawbrook Bank – 1.10%

UBL UK – 1.93% (payable on maturity)

UBL UK – 4.46% (payable on maturity)

UBL UK – 4.33% (payable on maturity)

**Islamic bank, pays an expected profit rate. Source: Moneyfactscompare.co.uk

 

Savings market analysis

Top savings deals at £10,000 gross

24-Mar-21

23-Mar-22

15-Feb-23

Today

Easy access account

Virgin Money – 0.50%

Virgin Money – 1.00%

Paragon Bank – 3.10%

Chip – 3.35%

Notice account

Charter Savings Bank – 0.65% (120-day)

Shawbrook Bank – 1.15% (120-day)

Furness BS – 3.50% (120-day)

Melton BS – 3.50% (180-day)

One-year fixed rate bond

Ahli United Bank (UK) plc (Through Raisin UK) – 0.65%

Al Rayan Bank – 1.70%**

Ahli United Bank (UK) plc (Raisin UK) – 4.20%

Al Rayan Bank – 4.43%**

Two-year fixed rate bond

QIB (UK) (Through Raisin UK) – 0.80%**

JN Bank – 1.96%

Union Bank of India (UK) Ltd – 4.35%

Al Rayan Bank – 4.55%**

Three-year fixed rate bond

BLME – 1.00%**

JN Bank – 2.11%

UBL UK – 4.43% (payable on maturity)

Al Rayan Bank – 4.60%**

Four-year fixed rate bond

BLME – 1.05%**

PCF Bank – 2.15%

UBL UK – 4.53% (payable on maturity)

UBL UK – 4.53% (payable on maturity)

Five-year fixed rate bond

Hodge Bank – 1.30%

PCF Bank – 2.30%

UBL UK – 4.63% (payable on maturity)

UBL UK – 4.63% (payable on maturity)

**Islamic bank, pays an expected profit rate. Source: Moneyfactscompare.co.uk

 

ISA market analysis

Top savings deals at £10,000 gross

24-Mar-21

23-Mar-22

15-Feb-23

Today

Easy access ISA

Al Rayan Bank – 0.60%**

Paragon Bank – 0.80%

Newcastle BS – 3.05%

Cynergy Bank – 3.20%

Notice ISA

Marsden BS – 0.55% (95-day)

Buckinghamshire BS – 0.60% (30-day)

Loughborough BS – 3.05% (120-day)

Furness BS – 3.30% (45-day)

One-year fixed rate ISA

Charter Savings Bank – 0.50%

OakNorth Bank – 1.28%

Virgin Money – 4.25%

Santander – 4.15%

Two-year fixed rate ISA

State Bank of India – 0.65%

UBL UK – 1.61% (payable on maturity)

Gatehouse Bank – 4.10%**

Santander – 4.20%

Three-year fixed rate ISA

Charter Savings Bank – 0.75%

UBL UK – 1.73% (payable on maturity)

UBL UK – 4.28% (payable on maturity)

UBL UK – 4.28% (payable on maturity)

Four-year fixed rate ISA

Hodge Bank – 0.65%

UBL UK – 1.74% (payable on maturity)

UBL UK – 4.37% (payable on maturity)

UBL UK – 4.37% (payable on maturity)

Five-year fixed rate ISA

Shawbrook Bank – 1.10%

UBL UK – 1.93% (payable on maturity)

UBL UK – 4.46% (payable on maturity)

UBL UK – 4.33% (payable on maturity)

**Islamic bank, pays an expected profit rate. Source: Moneyfactscompare.co.uk

 

Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:

“ISA season is in full swing with top rate deals seeing an improvement since last month. Savers who are also looking at accounts that do not have an ISA tax-free wrapper will be pleased to see several top rate deals are now paying higher returns, whereas a few other deals remain competitive. Inflation continues to diminish the true spending power of savers’ cash, but this should not deter consumers from shopping around for a better deal. Providers are making notable improvements to ISAs as we edge closer to the new tax year, so it’s vital savers take note of the latest offers to hit the market and move quickly to take advantage.

“Those savers who are coming off a one-year fixed bond or ISA will notice rates are much higher today for an equivalent deal. Both the top one-year fixed bond and one-year fixed ISA paid less than 2% a year ago, however, today the top deals pay 4% or more. This will be great news for savers who prefer to make a lump sum and even take interest as a form of monthly income. Challenger banks continue to dominate the highest positions within the top rate tables, but they can move quickly to pull a deal in high demand, as they typically focus on securing balances to fund their future lending.

“Savers who prefer to keep their cash in a flexible account must still take time to check their interest rate regularly, especially to establish if their provider has not passed on base rate rises. Time is ticking for consumers to use their ISA allowance, however, savers will notice a rate difference between fixed bonds and ISAs remains, so they must be aware of both their Personal Savings Allowance (PSA) and ISA allowance. To make the search for a competitive return easier, it would be wise for savers to sign up to rate alerts and newsletters to keep them up to date.”

*Data note: Please note that these savings product numbers only include deals that are available to UK residents (easy access, notice, fixed rate bonds, variable or fixed ISAs) and exclude regular savers and children’s savers (this figure does not count each interest payment option for each account), based on a £10,000 deposit. Higher rates may be available for other levels of deposit.

 

Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said:

“ISA season is in full swing with top rate deals seeing an improvement since last month. Savers who are also looking at accounts that do not have an ISA tax-free wrapper will be pleased to see several top rate deals are now paying higher returns, whereas a few other deals remain competitive. Inflation continues to diminish the true spending power of savers’ cash, but this should not deter consumers from shopping around for a better deal. Providers are making notable improvements to ISAs as we edge closer to the new tax year, so it’s vital savers take note of the latest offers to hit the market and move quickly to take advantage.

“Those savers who are coming off a one-year fixed bond or ISA will notice rates are much higher today for an equivalent deal. Both the top one-year fixed bond and one-year fixed ISA paid less than 2% a year ago, however, today the top deals pay 4% or more. This will be great news for savers who prefer to make a lump sum and even take interest as a form of monthly income. Challenger banks continue to dominate the highest positions within the top rate tables, but they can move quickly to pull a deal in high demand, as they typically focus on securing balances to fund their future lending.

“Savers who prefer to keep their cash in a flexible account must still take time to check their interest rate regularly, especially to establish if their provider has not passed on base rate rises. Time is ticking for consumers to use their ISA allowance, however, savers will notice a rate difference between fixed bonds and ISAs remains, so they must be aware of both their Personal Savings Allowance (PSA) and ISA allowance. To make the search for a competitive return easier, it would be wise for savers to sign up to rate alerts and newsletters to keep them up to date.”

*Data note: Please note that these savings product numbers only include deals that are available to UK residents (easy access, notice, fixed rate bonds, variable or fixed ISAs) and exclude regular savers and children’s savers (this figure does not count each interest payment option for each account), based on a £10,000 deposit. Higher rates may be available for other levels of deposit.

 

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.

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.

 

Contact Us 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
Caitlyn Eastell Apprentice Press & PR Assistant