Fintech firm Moneybox has raised the interest on its Cash ISA to 4.65% AER, earning an 'excellent' rating from Moneyfacts, which named it the 'pick of the week'.
Market-leading rate with a bonus
Adam French, head of consumer finance at Moneyfactscompare.co.uk, said: 'Moneybox has boosted the appeal of its Cash ISA by increasing its rate to 4.65% AER. The move lifts the account further into the top 10 while also paying one of the market-leading rates among comparable variable rate Cash ISAs, making it a compelling option for savers looking to maximise their tax-free returns.'
However, the headline rate includes a 1.15% bonus for the first 12 months, after which the rate will drop. French also warned: 'A lower rate will also be paid if four or more withdrawals are made in a 12-month period.' He added: 'As with any bonus account, it is sensible to review the ISA at that point to ensure it continues to meet your savings needs.'
Account details and eligibility
The Cash ISA can be opened with £500 or more, with no limit on the amount invested over time, though no more than £20,000 can be deposited per year into any ISA. The account is managed online or through the Moneybox app, and transfers from Cash, Stocks and Shares, Help to Buy or Innovative Finance ISAs are permitted.
The account is only available to new customers, but savers can split their Cash ISA savings across multiple ISAs within Moneybox's range. The account is protected up to £120,000 under the Financial Services Compensation Scheme.
Comparison with other top ISAs
Moneybox's offer shares the same rate as Vida Bank's 1 Year Fixed Rate ISA, which is Money Saving Expert's top Cash ISA pick. Vida's account requires a minimum opening investment of £1,000 and can be managed online. Withdrawals before 12 months incur 90 days' loss of interest.
RCI Bank tops MSE's ranking of two-year fixed rate ISAs, offering 4.80% AER. The online-only account requires a £1,000 minimum deposit, with a maximum of £1 million, and transfers in are allowed up to 14 days after opening.
