Rates Rundown: New Virgin accounts dominate cash ISA market

19th October 2017

This week, Virgin launched a number of new accounts to dominate the cash ISA best buys.

Unusually for this time of the year, outside of the usual ‘ISA season’ which is traditionally in the months leading up to the start of each tax year, we have seen a number of new best buy cash ISAs launched by providers.

The big mover this week has been Virgin Money – dominating our Fixed Rate Cash ISA tables for each term.

Moving into a leading position amongst easy access cash ISAs is Leeds Building Society.

Elsewhere, we have also seen new best buy fixed rate bonds, from the likes of Vanquis Bank and Axis Bank UK, as well as a market-leading bond from Cambridge & Counties Bank, available to businesses and charities.

Fixed Rate Cash ISAs

Perhaps the biggest news of the last week has been Virgin Money’s dominance of our Fixed Rate Cash ISA best buy tables. Not only are the Virgin ISAs now top of the 1, 2, and 5 year tables, but they are by a clear margin in some cases.

The rates available are now 1.51% tax free/AER for 1 year, 1.71% tax free/AER for 2 years, 1.85% tax free/AER for 3 years and 2.40% tax free/AER for 5 years.

Accounts can be opened with a minimum of £1, either online or by branch/post and transfers in of previous ISAs are accepted.

Only the 3 year ISA can be beaten in the current market, with Clydesdale Bank and Yorkshire Bank paying 2.20% tax free/AER, albeit for a longer term of 40 months.

The most eye-catching is the 5 year fixed rate ISA, which is a whole quarter of a percent higher than the nearest competitor.

The only word of caution is, with rates like this on offer, they may not last for long – so if you are interested, you may need to act quickly!

Variable Rate Cash ISAs

We have also seen movement amongst Variable Rate Cash ISAs in recent weeks, with the latest best buy launched by Leeds Building Society.

The Limited Issue Online Access ISA (Issue 3) is paying 1.11% tax free/AER, the top rate amongst easy access cash ISAs.

It is worth noting that the account matures on the 31 January 2019, after which it is transferred to a Maturity Access ISA, which is currently paying a much lower rate of 0.50%. Therefore, it is vital to shop around at the time and move, if possible, to a better paying option.

Register the account on our Free Rate Tracker Service, so we can remind you to review the account nearer the time.

Fixed Rate Bonds

Finally, there has been movement amongst Fixed Rate Bonds, with several new best buy accounts launched in the last week.

Firstly, Vanquis Bank improved the rates on offer on its 4 Year Fixed Rate Bond and 5 Year Fixed Rate Bond, with the latest versions now paying 2.35% and 2.40% gross/AER respectively.

The 4 year bond sits proudly at the top of the table, while the 5 year bond sits just behind the market leaders, Paragon Bank (2.45% gross/AER) and Ikano Bank (2.41% gross/AER).

Both accounts from Vanquis Bank can be opened online, with a minimum of £1,000.

Elsewhere, Axis Bank UK moved joint top of the 2 year fixed rate bond table, paying 2.05% gross/AER, sharing top spot with Atom Bank.

Again, the account from Axis Bank UK is available online only, with a minimum of £1,000.

Last but not least, for those looking for a fixed rate bond for their business or charity, Cambridge & Counties Bank launched a new 5 year fixed rate bond paying 2.20% gross/AER.

The top rate currently available for businesses and charities, it can be opened by post, with a minimum of £10,000.

For more information on any of the accounts above or for other options, call our Bath-based Savings Experts on 0800 011 9705. We’d love to hear from you.

Contact Us