Top six Cash ISAs with interest rates of up to 5.71%

With the new tax year in full swing, savings providers have been offering competitive interest rates on Cash ISAs to entice customers, and are offering returns of up to 5.71%.

However, after a Bank of England base rate cut last week, savers are being urged to make the most of the higher interest rates while they’re still available. Victor Trokoudes, CEO and founder of the smart money app Plum, said: “It’s important savers shop around and make sure that their savings are working as hard as possible. Don’t assume your high street bank will give you a good deal, you have to do your research to find the highest interest rates!. Look for a competitive interest rate, currently that’s anything above at least 4.5%. But you’ll have to act quickly, as the decrease in interest rates will affect current rates on offer.”

He added: “Fintechs, building societies, and smaller providers are often able to be more flexible on rates and may even be offering special deals to help boost your savings.”

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

These accounts have become particularly popular during the recent period of high interest rates, as thousands of savers have been hit with hefty tax bills on their pots. In a standard savings account, Britons can only earn so much interest before having to pay tax on it.

Easy access Cash ISAs provide savers with these tax-free benefits, and 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 six 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 1.51% 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.

Chip’s Cash ISA – 4.83%

Chip places just behind with an AER of 4.83%. The deal includes a bonus rate of 0.74% for 12 months, and savers can launch the account with just £1. Interest is paid monthly, and withdrawals are not restricted.

Trading 212’s Cash ISA Promo Rate – 4.83%

Trading 212 places just behind with an AER of 4/83%. The deal includes a bonus rate of 0.73% for 12 months, and savers can launch the account with just £1. Interest is paid monthly, and withdrawals are not restricted.

Moneybox Open Cash ISA – 4.82%

Moneybox also offers a Cash ISA with more flexible terms, paying a competitive AER of 4.82% on deposits of £500 or more. This rate includes a 0.82% bonus for the first 12 months, and interest is also paid monthly. There are no restrictions on withdrawals.

Plum Cash ISA – 4.81%

Plum’s Cash ISA offers an AER of 4.81% 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.

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.

Savers opting for a deal that includes a bonus rate should review their accounts when the period finishes to ensure they’re still bagging a competitive deal.