Moneybox has raised the interest rate on its easy access Cash ISA to a market-leading 5.11%, earning an “excellent” Moneyfactscompare rating.
The interest rate includes a 0.66% bonus for 12 months, and savers can launch the account with a minimum deposit of £500.
Interest is paid on the anniversary of opening, and three withdrawals are allowed per calendar year. A lower interest rate of 0.75% AER (variable) will apply if the account balance falls lower than £500 or a fourth withdrawal is made.
Commenting on the deal, Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, said: “This week, Moneybox has increased the rate on its Moneybox Cash ISA.
“The deal grabs the market-leading position when compared against its peers. It now pays an attractive 5.11%, which includes a bonus of 0.66% for the first 12 months, so it is important savers review after this period.
“Savers looking for flexibility and instant access to their tax-free savings may find this an enticing option.”
However, Ms Eastell urged people to “act with caution”. She said: “The rate drops significantly to 0.75% should they exceed three withdrawals in a 12-month period. In more positive news, further additions are permitted at any time into the account.
“On assessment, this deal earns an Excellent Moneyfacts product rating.”
Cash ISAs have grown in popularity over the past years as higher interest rates continue to drag more people into savings tax thresholds. These accounts allow people to save up to £20,000 a year tax-free.
Easy access accounts are typically more flexible, allowing savers to make payments and withdrawals with minimal restrictions and small opening deposit requirements.
Trading 212 joins Moneybox’s deal in one of the top spots with its easy access Cash ISA, also paying an Annual Equivalent Rate (AER) of 5.12%.
There is no minimum deposit requirement, and interest is paid monthly. The rate includes a 0.22% bonus for 12 months, and there are no limits to withdrawals.
Money app Plum takes the third position with an AER of 5.01% on deposits over £100.
The rate includes a 1.2% bonus of 12 months, and interest is paid monthly. However, a lower interest rate will apply if more than three withdrawals are made in one calendar year.
