🔔 Shawbrook ups its game as ISA competition starts to heat up

Activity amongst fixed rate cash ISAs has ramped up since the start of 2019, with Shawbrook Bank the latest provider to make a play for the top

As the build up to the start of the new tax year begins in earnest, traditionally banks and building societies start to improve the cash ISA rates they have available and competition increases in this area of the market.

This time around, it appears that a similar story is starting to unfold. At the end of January, we saw Cynergy Bank launch the highest-paying one year fixed rate ISA that we have seen for over two and a half years and now other providers are starting to follow suit.

The latest move comes from Shawbrook Bank, which has improved its full range of fixed rate cash ISAs, with each now appearing in our top five - including three new market leaders.

The provider has knocked Cynergy Bank (1.73% tax free/AER) from top spot in our one year table - albeit by the smallest of margins - with the new version of its account paying 1.74% tax free/AER.

It’s a similar story in our two year table, although the margin is larger this time. Shawbrook’s new offering is paying 1.91% tax free/AER, taking first position from Charter Savings Bank (1.87% tax free/AER).

Top spot was also taken by Shawbrook in our three year table – again there was very little in it, with the new account paying 1.96% tax free/AER, taking first place ahead of Marsden Building Society (1.95% tax free/AER).

To complete the picture, Shawbrook also launched a new version of its five year fixed rate cash ISA, paying 2.13% tax free/AER. Not a high enough interest rate to take pole position this time, but it is in second place behind the leader, Coventry Building Society (2.30% tax free/AER).

>> Find out more about the highest-paying fixed rate cash ISAs

Yet again, this demonstrates that it is the competition between providers that pushes interest rates in the right direction – which can only be a good thing for savers.

Keep your eye out over the next few weeks, as we could see other providers reacting to the latest challenge, to secure their own piece of the cash ISA pie - hopefully resulting in even better rates to choose from.

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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