An easy access Cash ISA is offering a market-leading 4.76% AER, according to the latest market analysis from financial data provider Moneyfacts. The rate, offered by Trading 212's Cash ISA Promo Rate account, remains steady and includes a 1.16% bonus for new customers who apply through Moneyfacts before July 3.
The account allows unlimited withdrawals without penalties and lets savers replace withdrawn funds in the same tax year without affecting their annual ISA limit. It can be opened and managed online or via the Trading 212 app, with a minimum deposit of just £1.
Competing Offers
Close behind Trading 212 is Moneybox's Cash ISA, offering a 4.75% AER rate with a 1.25% bonus for 12 months. However, the minimum deposit is £500, and if more than three withdrawals are made, the rate drops to 0.75% AER.
Plum's Cash ISA pays 4.46% AER monthly, includes a 1.90% bonus, and requires a minimum deposit of only £1.
Important Considerations
Ella Mower from Moneyfactscompare.co.uk warned savers to check the provider's partner banks before applying to ensure their money is covered by the Financial Services Compensation Scheme, which protects customers when authorised financial services firms collapse.
Lifetime ISA Returns Exceed 5%
Ms Mower observed that competition in the ISA market has led to returns on Lifetime ISAs topping 5% AER, an encouraging development for those saving for a first home or retirement. A Lifetime ISA allows savers to deposit £4,000 per year until age 50, with the government adding a 25% bonus up to £1,000 annually. The LISA limit counts towards the £20,000 annual ISA limit.
Moneybox's app-only cash LISA is the top pick with a 5.15% rate, followed by Plum's LISA at 5.10% and Tembo Money's at 4.30%. All three can be managed via their providers' apps.
