Easy access ISA best buys hit three-year high

Author: Tom Adams
11th March 2019

A spark of competition has ignited the easy access ISA best buys, as the average of our top five accounts hit its highest level since January 2016.

Sparkler

With the end of the current tax year just around the corner, providers have made significant improvements to their cash ISA offerings, with the latest news happening in the easy access cash ISA table.

This positive news is mainly a result of noteworthy releases from the likes of Santander and Coventry Building Society – where the market-leading 1.50% tax free/AER rate offered by both providers is the highest we have seen in this area of the savings market since May 2016.

This also means that the gap has narrowed between the top easy access cash ISA and standard easy access account, with the differential now just 0.01%. This of course means that the easy access cash ISA is even more of a genuine choice to consider, beyond the well-established tax benefits that an ISA offers.

But, the top five accounts as a group have improved, suggesting a significant increase in competition between the top providers. As a result, the average of the top five accounts is now the highest it has been since January 2016 – over three years.

This means that there are a number of options to choose from for those looking for a home for their 2018/19 ISA allowance or even to transfer an existing ISA into.

The aforementioned accounts from Coventry Building Society and Santander are both paying 1.50% tax free/AER, as mentioned above - although the Santander cash ISA is only available to new and existing 1|2|3 World or Santander Select customers.

The ISA from Coventry is available to all, but the rate does include a 0.35% introductory bonus for the first 12 months.

Next in line if you are looking for an easy access ISA is OakNorth, which pays 1.45% tax free/AER, though this account is open to all and there is no introductory bonus for those who prefer a more straightforward option.

For more on the accounts above and for the rest of our variable rate cash ISA top five, take a look at our best buy table.  

>> Top-paying variable rate cash ISAs

These are certainly encouraging signs for those looking to make the most of their ISA allowance before the end of the current tax year or even those who are starting to plan ahead for the 2019/20 tax year.

If you need any further help with finding the accounts that are most suitable for your needs, please call us on 0800 011 9705 to speak to one of our expert savings specialists.


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