The Bank of England's decision to hold interest rates at 3.75% in February has left savers searching for the best returns amid persistent inflation above 3%. With inflation not expected to hit the 2% target until later in the year, it is crucial to find accounts that preserve buying power.
In the cash ISA market, Trading 212 leads with an effective rate of 4.4% when using an exclusive code from The Independent, offering unlimited withdrawals and a one-year bonus. Moneybox follows at 4.32%, but allows only three withdrawals per year and requires a £500 minimum deposit. Plum offers 4.3%, though the full rate depends on a bonus paid after 12 months, with a lower rate of 2.54% thereafter.
For easy access accounts, Chase tops the market at 4.5%, but requires opening a current account. Virgin Money pays 4.15% with a limit of two withdrawals annually, while Nottingham Building Society offers 4.14% with a bonus until April 2027. GB Bank provides a 120-day notice account at 4.33% for those who can plan withdrawals.
Fixed-term deals guarantee rates for the duration. The best one-year rate is 4.32% via Raisin with AlRayan Bank, requiring £1,000 minimum. For two years, OakNorth offers 4.18% with just a £1 minimum deposit, though interest is taxable upon receipt.
