Building Society launches new Cash ISA paying 5% interest and earns 'excellent' rating

West Brom Building Society has launched a new Cash ISA paying a five percent interest rate, earning an “excellent” Moneyfactscompare rating.

Savers can get started with a minimum deposit of just £1 and an option for monthly interest payments is available for those looking to “boost” their income.

Commenting on the deal, Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, said: “The latest update from West Brom Building Society sees a launch of a new Double Access ISA, which pays five percent yearly.

“This account takes a prominent place in its sector and may be an appealing option for savers who have yet to use their ISA allowance.

“Additionally, savers have the choice to opt into a monthly interest option if they wish to boost their income.

“Investors can access their cash, however, withdrawals should be carefully considered as a lower rate is paid if more than two are made per year.”

Overall, Ms Eastell added: “The deal earns an Excellent Moneyfacts product rating.”

While West Brom may be offering an attractive deal, it doesn’t quite top the table.

For those looking for more flexibility, Trading 212 is now taking the top spot with its Cash ISA offering an Annual Equivalent Rate (AER) of 5.2 percent. There are no withdrawal restrictions and interest is paid daily.

Plum falls just behind with an 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 lower returns.

Chip is also offering a competitive AER of 5.1 percent with unlimited withdrawals. Savers need just £1 to launch an account and interest is paid monthly.

Commenting on the market, Money.co.uk’s savings expert Lucinda O’Brien said: “The top interest rates for savings accounts are still remaining around five percent, which is good news for savers as that’s more than double inflation.”

At present, inflation is currently running at 2.3 percent, nearly hitting the Government-set target of two percent.

Ms O’Brien continued: “Cash ISAs remain competitive with Plum’s easy access at 5.17 percent and the WestBrom has a 60-day notice cash ISA at 5.10 percent.”