Castle Trust Bank has raised the interest rate on its fixed e-Cash ISA to 4.87 percent, earning an “excellent” Moneyfactscompare rating.
The rate is fixed for one year and savers need a minimum deposit of £1,000 to open the account.
Commenting on the deal, Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, said: “This week, Castle Trust Bank has increased the rate on its one-year Fixed Rate e-Cash ISA, improving its position within its sector.
“The account pays an attractive 4.87 percent and may well appeal to savers looking to utilise their ISA allowance and receive a guaranteed return on their investments.”
She noted: “Although earlier access is permitted, it will be subject to 90 days’ loss of interest and closure of the account, which should be carefully considered.
“Additionally, it is important savers fund their account with a minimum opening investment of £1,000 within the first 14 days, otherwise they will receive no interest payment and their money will be refunded.
“However, savers will be able to contribute more funds if they wish as further additions are permitted for 14 days from the account opening. On assessment, the account secures an Excellent Moneyfacts product rating.”
Castle Trust Bank currently offers the top rate for one-year fixed Cash ISAs, but the competition doesn’t fall too far behind.
United Trust Bank pays an Annual Equivalent Rate (AER) of 4.85 percent on its Cash ISA One Year Bond. Savers need a slightly larger minimum deposit of £5,000 to launch the account and interest is paid on maturity.
Earlier access is subject to 180-day loss of interest, however, interest can be withdrawn annually on the anniversary.
For those with smaller funds to invest, Paragon Bank offers an AER of 4.83 percent on a minimum deposit of £500. Interest is applied on the anniversary of the account opening.
However, similar to the other accounts, savers should be comfortable investing their money for the entirety of the term or face a charge. Earlier access made to this account will be subject to a 90-day loss of interest.
