SKIPTON Building Society has just launched an easy-access Cash Isa paying 1.48 per cent in interest, making it the best account for your hard-earned cash.
The account narrowly beats the previous market-leading easy-access account by Coventry Building Society, which pays customers 1.47 per cent in interest.
Virgin Money also pays customers 1.47 per cent in interest through its Double-Take E-Isa, but you’re only allowed to make two cash withdrawals a year.
Easy-access accounts mean that you won’t be charged for withdrawing your cash, unlike fixed-rate accounts where you will be charged a penalty for taking money out before the term is up.
While fixed-rate accounts offer better rates, 1.48 per cent on your savings is the best you’ll get if you’re likely to need access to your cash.
The new best buy allows you to make unlimited withdrawals, but keep in mind the account comes with a fixed bonus of 0.48 per cent for the first 16 months, so after this you should consider moving your cash elsewhere.
The good news is that you only need £1 to be able to open the account, which can be done both online and at a branch.
Isas are instant savings accounts, which let you save up to £20,000 tax-free each financial year.
How do you switch Isa providers?
IF you’re in the market for a new, better paying Isa, there’s one thing you shouldn’t do.
Never withdraw money from your Isa account to put it into your new one – if you do it’ll lose its tax free benefits.
Instead you need to follow the simple transfer process.
Make sure that the new account you want to use accepts transfers (not all do) and then fill in the Isa transfer form with the new provider.
It will arrange for your savings to be transferred over, with the process taking no more than 15 working days.
And remember, you can only have one “active” Cash Isa per tax year.
Rachel Springall, finance expert of comparison site Moneyfacts, told The Sun: “As the peak of the Isa season fizzled out, many top fixed and limited edition Isas’ were pulled, so it’s positive to see some competition within the easy-access Isa market from well-known brands.
“Whilst 1.48 per cent sits at the top of the easy-access Isa market, savers could have got 1.50 per cent from Coventry Building Society in March.
“In only the last week Virgin Money increased its easy access Isas’ to maintain what was a market-leading position in its sector paying 1.47 per cent, but it is worth keeping in mind that these deals have withdrawal restrictions.
“Overall it is fantastic to see building societies offering such promising returns for savers, they should be considered seriously.”
The new easy access cash Isa is not offering the highest rate we’ve seen recently – ICICI Bank offered 1.55 per cent back in January this year.
If you’re thinking about opening an Isa account then you should check out our round up of the accounts with the best rates.
Meanwhile, Martin Lewis has revealed how to earn 100 times more on your savings.