Are you SURE you’ve got the best ISA deal?

Congratulations MoneySuperMarket users! More than 45% of you told us you know exactly what interest rate you are being paid on your cash ISA savings.

 Got the best ISA? Best make sure!

But before you start patting yourself on the back, maybe you should double-check your rate hasn’t changed since you last looked.

Why? Because instant access cash ISA rates are going DOWN!

Providers such as HSBC, NatWest, Yorkshire Building Society and Barclays have all slashed the returns available on their easy access tax-free accounts – with many now paying just 1% as a result.

And Bank of England figures show the average return on an ISA has slumped from 2.57% to 1.16% over the last two years.

“More than 45% of you know exactly what interest rate you are being paid on your cash ISA savings…”

But hang on a minute. Not all cash ISAs are chopping the returns they offer.

In fact, building societies have been ramping up the rates on their fixed-rate cash ISAs.

For example, Yorkshire building society’s three-year ISA pays an impressive 2.5%.

Which means that, if you’re only getting the average rate of interest on your ISA, you could more than double your earnings by switching to a more competitive account.

Who’s cutting rates?

A long list of ISA providers have cut rates, or announced plans to do so, over the last few months…

HSBC: e-ISA rate falling from 1.6% to 1% on October 1.

Barclays: 11 ISAs that are now closed to new customers to be switched to the Instant Cash ISA 1 on November 5. This pays 1.29% up to £15,000, 1.39% between £15,000 to £30,000 and 1.49% on £30,000 or more. Most savers will lose out.

First Direct: Cash ISA rates will be pegged down from 2% to 1.5% on October 16.

Lloyds: Some Cash ISA savers will see their rates cut from 1% to 0.55% within the next two months.

Tesco Bank: Cash ISA rate already dropped from 1.75% to 1.25% on July 1.

Some rates have already dropped!:

Chelsea/Yorkshire BSs: Cash ISA rates fell from 1.25% to 1% on July 14.

Virgin Money: Cash E-ISA (Issue 5) rates slid from 1.75% to 1.5% on July 30.

NatWest/RBS: Cash and Instant Access ISA rates plunged to 1% from 1.5% on August 1.

In total, the cuts are expected to cost savers £1.42 billion in lost interest – unless, of course, they switch accounts!

Who’s raising rates?

The list isn’t nearly as long, but some ISA providers are bucking the trend by offering higher rates – especially on fixed-rate accounts.

These rates are only available to new customers, though. That’s why it’s vital to be on the ball and move your account to get the best deal…

Yorkshire/Chelsea BSs (they’re part of the same group): the rate on their three-year cash ISA is now a chunky 2.5%.

Barclays: its two-year cash ISA now pays 2.02%.

Newcastle BS: new two-year cash ISA pays 2%.

And whatever type of cash ISA you want, there are some great deals out there!

Do you know what rate your ISA is earning

Deals to look out for

Instant access:

You can transfer your ISA stash to either BM Savings’ ISA Extra (Issue 11) or the Post Office’s Premier Cash ISA Issue 7, both paying 1.55%.

Fixed rates:

One year: Aldermore Bank’s one-year Cash ISA pays 1.5% on £1,000 or more and accepts transfers in from existing ISAs.

Two years: Barclays’ two-year Cash ISA Issue 4 leads the field at 2.02%, followed by AA Savings and Newcastle BS at 2%. All these accounts accept transfers in.

Three years: The new Yorkshire/Chelsea BS three-year fixed-rate ISA pays 2.5%. Also try Aldermore Bank’s three-year Cash ISA at 2% on £1,000 plus. Both accounts accept transfers in.

Please note: any rates or deals mentioned in this article were available at the time of writing. Click on a highlighted product and apply direct.

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