Castle Bank has increased the interest on its fixed rate Cash ISA to 4.94 percent, earning an “excellent” Moneyfactscompare rating.
Savers can get started with a minimum deposit of £1,000 and interest is fixed for one year and paid on maturity.
Commenting on the deal, Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, said: “Castle Trust Bank has increased the rate on its one-year Fixed Rate e-Cash ISA, this week which improves its position within the market.
“The account pays an attractive 4.94 percent and may well appeal to savers looking to utilise their ISA allowance and receive a guaranteed return on their investments.
“Earlier access is permitted; however, it will be subject to a 90-day loss of interest penalty and closure of the account, which should be carefully considered.”
Ms Eastell noted that it’s “crucial” savers fund their account with at least the minimum opening investment of £1,000 within the first 14 days, otherwise, they will receive no interest payment and their money will be refunded.
She added: “Savers can 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.”
While Castle Trust Bank may be offering a more attractive deal, it isn’t currently taking the top spot for one-year fixed rate Cash ISAs.
For multiple months, Virgin Money’s One Year Fixed Rate Cash ISA Exclusive (Issue 13) has placed top of the list with an Annual Equivalent Rate (AER) of 5.05 percent.
There is no minimum deposit required to get started, interest is applied on maturity, and early access is subject to 60 days’ loss of interest.
Secure Trust Bank places just behind with an AER of 4.95 percent. Savers need a minimum deposit of £1,000 to launch the account and interest is paid yearly.
Earlier access is only permitted on closure and will be subject to a 90-day loss of interest via the nominated account.
Commenting on the market, Lucinda O’Brien, Money.co.uk’s savings expert said the number of high-interest-paying savings accounts still available is “good news”.
Ms O’Brien said: “There are still plenty of competitive deals available in the market.”
However, she warned: “With a new Government now in place, things could change, so it’s important to compare deals now to avoid missing out.”
