Secure Trust Bank, winner of Best Savings Provider at the Savings Champion Awards 2019, has added to its stable of savings accounts by introducing a cash ISA for the first time.
And, as we have come to expect from Secure Trust Bank, it has entered straight into our one year fixed rate cash ISA best buy table - right into the top spot.
The new ISA in question is a one-year fixed rate cash ISA, paying 1.60% tax free/AER on balances of £1,000 plus – maturing on 15th July 2020. As well as new funds, it accepts transfers in from other cash ISAs but unfortunately not from stocks and shares ISAs.
The account does have to be opened and managed online though - so those who are looking to open an account in a more traditional way will need to look elsewhere.
That said, another bank joining the cash ISA ranks is good news.
In June 2017, shortly after the introduction of the Personal Savings Allowance (PSA), the best one-year cash ISA was paying over 40% less than the best fixed term bond. Charter Savings Bank was paying just 1.16% on its cash ISA compared to BLME’s 1 Year Premier Deposit Account, which was paying an Expected Profit Rate of 2%.
Today Secure Trust Bank is paying 1.60% on its market-leading cash ISA, compared to the best one-year bond - again from BLME - paying 2.20%, a smaller gap of 27%.
There is still a definite gap between the rates on offer on fixed rate bonds compared to fixed rate ISAs and that could well be because many of the providers who are producing the competition in the fixed rate bond market, are not yet in the cash ISA space.
Therefore, it’s really good news to see another prominent and often competitive challenger bank offering cash ISAs. Hopefully this will boost the rates available, especially when we come around to ISA season once again.
@savingschampion
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