Virgin Money offers market-leading 4.55% interest rate on cash ISA | Personal Finance | Finance

While interest rates continue to fluctuate, those hoping to invest in an ISA will want to ensure they’re opting into the most competitive products.

Virgin Money is currently topping the leaderboard for three-year fixed cash ISAs with an Annual Equivalent Rate (AER) of 4.55 percent – and savers can get started with just £1. 

Cash ISAs come with additional benefits to savings accounts, such as enabling savers’ money to grow without having to pay tax on the interest above the Personal Savings Allowance (PSA).

These accounts also typically offer some of the highest interest rates on the market, but they can come with a few more restrictions, such as penalty charges for early access or transfers.

Cash ISAs that offer a fixed rate of interest also add a layer of certainty, as it means the bank or building society cannot change the interest rate until the maturity date.

READ MORE: Banks accused of ‘ripping off’ loyal savers for not passing on rate hikes

Virgin Money’s Three Year Fixed Rate Cash E-ISA (Issue 585) can be opened with a minimum deposit of £1 and interest can be paid either monthly or annually. Annual interest is paid on August 5, while monthly interest is paid on the last day of the month.

Savers are able to withdraw from this account, but the money cannot be put back in. Withdrawals made within the fixed rate period will also be subject to a charge equivalent to 120 days’ loss of interest on the amount withdrawn.

Only one account can be opened per UK resident and they must be aged over 16.

Savers with Virgin Money can also have access to special deals across the wider Virgin Group that can help people save on things like everyday essentials, days out and holidays.

But while Virgin Money is currently topping the three-year fixed cash ISA leaderboard, the competition isn’t too far behind. UBL UK’s Three Year Fixed Rate Cash ISA is offering an AER of 4.45 percent.

Savers can open an account with a minimum deposit of £2,000 and interest can be paid monthly, quarterly or annually.

Early withdrawals are permitted before maturity, however, a charge equivalent to 270 days of interest will be applied.

Shawbrook Bank’s Three Year Fixed Rate Cash ISA Bond (Issue 45) isn’t too far behind with an AER of 4.38 percent.

The account can be opened with a minimum deposit of £1,000 and interest is calculated daily and applied on the anniversary.

The account can only be opened online and withdrawals and transfers are permitted, however, it will be subject to a loss of 270 days’ interest.

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