Top six easy access Cash ISAs paying up to 5.17 percent interest
Britons are being urged to make the most of the high savings interest rates currently on offer as millions leave money in low-paying accounts.
In a new fiscal year of tighter tax allowances, Britons may be searching for more tax-efficient savings tools to protect more of their wealth from HMRC.
Cash ISAs are a popular option, as these accounts enable people's money to grow without having to pay tax on the interest above the Personal Savings Allowance (PSA).
While there are many types of Cash ISA available, demand for easy access ISAs has increased over the past few years as high living costs have left more people needing to dip into their savings without facing a penalty.
Interest rates have been falling since the six percent peaks of last summer, however, there are still some particularly competitive rates available - with some paying up to 5.17 percent.
Britons are being urged to make the most of these rates now before they fall further, especially with new research showing a staggering £253billion is currently sitting idle in bank accounts earning no interest.
What is an ISA?
ISA stands for Individual Savings Account.
The main difference between an ISA and other savings accounts is it offers tax-free interest payments.
The ISA allowance for the 2023/24 tax year is £20,000.
You can have a cash ISA - including a Help to Buy ISA - a stocks and shares ISA, an innovative finance ISA, a Lifetime ISA or a mixture of them all.
You must save or invest by April 5 - the end of the tax year.
Top 6 easy access Cash ISAs
Plum is currently taking the top spot with an Annual Equivalent Rate (AER) of 5.17 percent off a £100 deposit. The interest rate includes a 0.86 percent bonus for 12 months.
Interest is paid monthly and up to three withdrawals are permitted without facing a lower interest rate.
Don't miss...
Octopus Energy, British Gas and EDF's cheapest fixed tariffs available today [ANALYSIS]
Bank raises interest to 5.14% on savings account and earns 'excellent' rating [INSIGHT]
Property gifting £1 rules explained as parents seek to sell to children [EXPLAINED]
For those looking for more flexibility, Chip is offering an AER of 5.1 percent with unlimited withdrawals. Savers need just £1 to launch an account and interest is paid monthly.
Zopa Smart ISA offers an AER of 5.08 percent and can be opened with a minimum of £1. Interest is paid monthly and withdrawals are permitted at any time.
Charter Savings Bank’s Easy Access Cash ISA (Issue 46) falls just behind with an AER of 4.87 percent. Savers need a slightly larger minimum deposit of £5,000 to launch the account and interest is paid on the anniversary of opening. Withdrawals are permitted without restriction.
Kent Reliance’s Cash ISA Easy Access (Issue 50) places fifth with an AER of 4.86 percent.
Savers can open an account with a minimum of £1,000 and interest is paid yearly. Withdrawals are also permitted.
Placing sixth is the Family Building Society’s Market Tracker Cash ISA (2) with an AER of 4.86 percent. The account can be launched with a smaller deposit of £500 and interest is paid yearly. Withdrawals are allowed with restrictions.
