By SYLVIA MORRIS, THIS IS MONEY AND DAILY MAIL SAVINGS EXPERT
Updated:
Savers are being offered some exceptional easy-access deals on their cash Isas – but finding the best one is not as simple as looking for the highest rates.
Account providers are so determined to be in the best-buy tables, they use every trick in the book. They launch headline-grabbing rates but with restrictive terms and conditions.
For example, they add a bonus that falls away after a year or restrict the number of times you can take money out.
Some of the top deals are on offer only to new customers.
Many are not flexible, which means you can’t take money out and replace it in the same tax year without eating into your £20,000 annual cash Isa allowance.
If you are happy to abide by these stipulations, jump in – just make sure you have read the small print first.
Some of the top easy-access deals are only on offer to new customers while others come with restrictive terms and conditions
I do not include these in my Star Buys table but keep you informed about what is on offer.
So here are the best deals depending on how you want to open your account and the hoops you need to jump through to get the top rates.
Trading 212 pays the top rate at 4.87 per cent. It is an app-based account and on offer only to new customers.
It comes with a bonus of 1.27 percentage points payable for a year. It is flexible but not the place to transfer your existing cash Isas because you won’t earn the bonus rate, only 3.6 per cent.
The new Double Access Cash Isa from Ecology BS pays 4.65 per cent. You can also open it through the post. But next November your money will be moved into the society’s ordinary cash Isa where the rate stands today at 3.05 per cent.
You are allowed only two withdrawals a year, reset on January 1. It’s not flexible and you can’t transfer your existing Isas.
Hargreaves Lansdown’s online Cash Isa pays 4.52 per cent. You can transfer your other cash Isas here but the account is not flexible.
Vida Double Access Isa 2 online account pays 4.36 per cent and allows only two withdrawals a year.
If you want a flexible account with no withdrawal restrictions or bonus, the Ford Money Flexible Cash Isa has just raised its rate to 4.21 per cent, up from the 3.79 per cent it paid last month.
On the high street, Nottingham BS pays 4 per cent on its flexible Annual Allowance Isa. It’s flexible but you can’t transfer existing Isas here.
Family BS pays 4.1 per cent on its Market Tracker Isa available online, by post or through its branch in Epsom, Surrey.
It guarantees to pay the average rate on the top 20 accounts but is not flexible. You can transfer your existing cash Isas but not online.
Lloyds bond pays interest at start
I am used to quirks and twists on savings accounts but this is a new one on me.
Lloyds Bank has launched a one-year online fixed rate bond with a difference.
The rate isn’t that good, at 4 per cent with an extra 0.2 points for its Premier current account holders.
But it will pay you your interest at the start of the term rather than making you wait 12 months.
The bank says its research shows customers want to skip the wait and enjoy their interest sooner, while their savings stay put for the full year.
Be careful, though, to keep an eye on your tax position – you will get the interest in the current tax year rather than the next one.