Top five easy access Cash ISAs paying up to 5.71% interest

With the new tax year in full swing and Cash ISA allowances reset, savings providers have been offering competitive interest rates to entice customers, and some are offering returns of up to 5.71%. However, with Bank of England base rate cuts forecasted as early as next week, savers are urged to make the most of the higher interest rates while they still can.

Antonia Medlicott, founder and managing director at financial education specialists, Investing Insiders, said: “With Cash ISAs currently offering up to nearly 5% in interest on deposits and some offering even more with introductory rates, savers can gain peace of mind over the returns they will receive and some great rates. However, most of the top-paying accounts offer ‘variable’ rates, meaning they can go up and down as the Bank of England rate fluctuates.”

People living in the UK can currently save up to £20,000 a year in an Individual Savings Account (ISA) without paying tax on the interest earned.

These accounts have become particularly popular during the recent period of high interest rates, as millions of savers have been met with sizeable tax bills on their nest eggs. In a regular savings account, Britons can only earn so much interest before paying tax on it.

Easy access Cash ISAs provide savers with these tax-free benefits, but terms typically mean there are few to no withdrawal restrictions. This makes these accounts beneficial for those needing to dip into their pots. Here are the top five available at the time of writing.

Moneybox Cash ISA – 5.71%

Investment app Moneybox tops the list with an Annual Equivalent Rate (AER) of 5.71%, and savers can launch the account with a minimum deposit of £500.

Moneybox’s offer includes a 1.57% bonus rate for the first three months, after which the rate will drop. Up to three withdrawals are permitted per 12-month period, and interest is paid on the anniversary.

Trading 212’s Cash ISA Promo Rate – 5.07%

Trading 212 places just behind with an AER of 5.07%. The deal includes a bonus rate of 0.72% for 12 months, and savers can launch the account with just £1. Interest is paid monthly, and withdrawals are not restricted.

Plum Cash ISA – 5.04%

Plum’s Cash ISA offers an AER of 5.06% on deposits of £100 or more. This rate includes a 1.5% bonus for the first 12 months, and interest is also paid monthly. However, Plum imposes a lower interest rate if you make more than three withdrawals in a calendar year.

For savers who can keep their withdrawals to a minimum, Plum offers a competitive rate with fewer restrictions.

Moneybox Open Cash ISA – 5.05%

Moneybox also offers a Cash ISA with more flexible terms, paying a competitive AER of 5.05% on deposits of £500 or more. This rate includes a 1.05% bonus for the first 12 months, and interest is also paid monthly. There are no restrictions on withdrawals.

Tembo Money – 4.8%

Topping the board for accounts that aren’t offering a limited time bonus, Tembo Money offers an AER of 4.8%. Savers can launch the account with just £10 and interest is paid monthly. There are no withdrawal restrictions.