Monday, 06 February 2023 12:00
Cash ISA rates rising rapidly
After years in the doldrums, cash ISA rates are rising rapidly thanks to rapid increases in the bank rate which rose to 4% last week.
The average easy access ISA rate has risen from 0.26% in February 2022 to 1.85% this month, according to data provider Moneyfacts.
While cash ISA rates have risen they are still well below CPI inflation which remains over 10%.
Moneyfacts says cash ISA rates have risen “substantially” over the past 12 months.
- Top ISA rates have risen considerably over the past 12 months, across easy access, notice, one-year and five-year fixed terms
- Non-ISA rates are also on the rise for savers who use their their Personal Savings Allowance (PSA)
- Those who locked into the top one-year fixed rate ISA a year ago will find the equivalent top deal now pays more than four times the amount of interest
- The top rate on a five-year fixed ISA pays almost twice the rate than the equivalent deal in February 2018
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Savings market analysis – average rates and top rates |
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Average savings rates |
Feb-18 |
Feb-22 |
Feb-23 |
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Easy access ISA |
0.78% |
0.26% |
1.85% |
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Easy access (non-ISA) |
0.48% |
0.21% |
1.73% |
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Notice ISA |
0.96% |
0.37% |
2.57% |
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Notice account (non-ISA) |
0.79% |
0.53% |
2.55% |
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One-year fixed rate ISA |
1.12% |
0.60% |
3.41% |
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One-year fixed rate bond |
1.19% |
0.84% |
3.61% |
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Five-year fixed rate ISA |
1.85% |
1.40% |
3.68% |
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Five-year fixed rate bond |
1.97% |
1.51% |
4.04% |
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Average rates (gross) based on a £10,000 deposit on a 1st of month basis. |
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Top rates |
Feb-18 |
Feb-22 |
06-Feb-23 |
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Easy access ISA |
Virgin Money – 1.21% |
Shawbrook Bank – 0.61% |
Newcastle BS – 3.05% |
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Easy access (non-ISA) |
RCI Bank UK – 1.30% |
Investec Bank plc – 0.71% |
Newcastle BS – 3.05% |
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Notice ISA |
Marsden BS (120 day) – 1.30% |
Aldermore (30 day) – 0.55% |
Loughborough BS (120 day) – 3.05% |
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Notice account (non-ISA) |
Secure Trust Bank (180 day) – 1.65% |
Shawbrook Bank (120 day) – 1.08% |
Furness BS (120 day) – 3.50% |
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One-year fixed rate ISA |
Leeds BS – 1.45% |
Coventry BS – 1.00% |
Virgin Money – 4.25% |
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One-year fixed rate bond |
Atom Bank – 1.95% |
Union Bank of India (UK) Ltd – 1.40% (payable on maturity) |
SmartSave – 4.17% |
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Five-year fixed rate ISA |
United Bank UK* – 2.24% (payable on maturity) |
UBL UK – 1.82% (payable on maturity) |
UBL UK – 4.46% (payable on maturity) |
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Five-year fixed rate bond |
Secure Trust Bank – 2.43% |
UBL UK – 2.19% (payable on maturity) |
UBL UK – 4.63% (payable on maturity) |
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Top rates (gross) based on a £10,000 deposit, on a 1st of month basis unless specified, for new customers. Higher rates may be available for other levels of deposit. *Now UBL UK. Source: Moneyfacts.co.uk |
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Rachel Springall, finance expert at Moneyfacts.co.uk, said: “Consumers who prefer a longer-term fixed ISA will be pleased to see much higher rates when they come off their current deal this year, as the top rate on a five-year fixed ISA is over 2% higher than the equivalent deal in 2018.”
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