Marsden Building Society has raised the interest rate on its Cash ISA to 5.05 percent, earning an “excellent” Moneyfactscompare rating.
The ISA is easy access, meaning people can dip into their savings when needed without restriction. Interest is also paid annually.
Cash ISAs are a popular savings option, as these accounts enable people’s money to grow without having to pay tax on the interest above the Personal Savings Allowance (PSA).
Commenting on the deal, Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, said: “Marsden Building Society has increased the rate on its Online Cash ISA this week, paying 5.05 percent.
“Available to savers who have £5,000 to invest, the deal secures a competitive position within its sector and may appeal to savers looking for flexibility with their ISA cash.
“Upon opening the account, investors are able to make cash ISA transfers into the account, which may be an added bonus for some, however, it is worth considering transfers in are permitted on external transfers only.
“Overall, the account earns an Excellent Moneyfacts product rating.”
While Marsden Building Society may be offering a more competitive rate, it isn’t currently topping the table in the easy access Cash ISA market.
Trading 212 is taking the top spot with its Cash ISA offering an 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 a lower interest rate.
Savers are urged to act quickly if they want to capitalise on the current high-interest rate environment.
Following today’s Bank of England interest rate cut announcement, Kevin Mountford, co-founder of Raisin UK, warned: “Savings accounts and tracker rate mortgages should reflect these lower interest rates immediately.
“Fixed-rate mortgages have already factored in the likelihood of lower rates, with some reductions in the past few weeks.
“Any individuals with savings or pension pots should consider locking in any market-leading rates on longer terms immediately, as this will prompt reductions across the market, leading to lower interest earnings over time.”
While today’s rate cut eases consumer pressure, Mr Mountford noted that it may still be “some time” before we see significant relief for household finances.
He said: “We shouldn’t expect borrowing costs to decrease as rapidly as they increased, and we may see one more cut before the Chancellor’s Budget announcement in October.”
