🔔 Shawbrook Bank withdraws its best buy cash ISAs

Having dominated the fixed rate ISA tables for the last few weeks, Shawbrook Bank has taken a step back today, by withdrawing its current fleet of fixed rate ISAs, replacing them with lower, albeit still relatively competitive ISAs.

The new ISAs are paying the following;

• 1 Year Fixed Rate Cash ISA Issue 28, paying 1.50% tax free/AER (1.49% monthly gross) - down from 1.66% tax free/AER.

• 2 Year Fixed Rate Cash ISA Issue 27, paying 1.65% tax free/AER (1.64% monthly gross) - down from 1.86% tax free/AER.

• 3 Year Fixed Rate Cash ISA Issue 12, paying 1.75% tax free/AER (1.74% monthly gross) - down from 2.01% tax free/AER.

• 5 Year Fixed Rate Cash ISA Issue 14, paying 1.95% tax free/AER (1.93% monthly gross) - down from 2.27% tax free/AER.

But just how do they stack up now?

Well, as our fixed rate cash ISA best buy tables show, they don’t make it into the top 5 - although some of the terms only miss out by a small margin.

Currently the best rates available range from 1.65% tax free/AER for one year with Aldermore to 2.26% for five years with Charter Savings Bank.

>> Take a look at our Fixed Rate Cash ISA best buy tables

Cash ISA rates still lag behind the non-ISA equivalents, with best buy fixed rate bonds paying between 2.05% gross/AER for one year and 2.70% for five years. However, cash ISA rates have improved more over the last year than non-ISA rates, so the good news is that the gap is narrowing.

And with savings rates on the increase as a whole, the cash ISA is once again becoming a valuable tax-efficient account that shouldn’t be ignored. As the interest on non-ISA accounts increases, savers’ Personal Savings Allowances (PSAs) of up £1,000 per year will be used up far more quickly.

So, it makes sense to consider sheltering at least some of your cash in a tax-free environment if it looks like you may soon be fully utilising your PSA.

If you would like any help with your savings, why not give one of our Bath-based experts a call on 0800 011 9705, we’d love to hear from you.

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