Moneybox offers savers 5.46% interest on ‘excellent’ rating Cash ISA | Personal Finance | Finance
Moneybox is offering savers a market-leading 5.46% interest rate on its easy access Cash ISA, earning an “excellent” Moneyfactscompare rating.
The interest rate, which was reduced this week, includes a 1.15% bonus for 12 months, and savers can launch the account with a minimum deposit of £500. Interest is paid on the anniversary of opening, and three withdrawals are allowed per calendar year. A lower interest rate of 0.75% AER (variable) will apply if the account balance is less than £500 or a fourth withdrawal is made. Commenting on the deal, Caitlyn Eastell, Spokesperson at Moneyfactscompare.co.uk, said: “This week, Moneybox has reduced the rate on its Moneybox Cash ISA. Despite this, the deal continues to hold the market-leading position when compared against its peers.
“It now pays an attractive 5.46%, however, it does include a 1.51% bonus for the first three months, so it is important savers review the rate when this expires. Savers searching for a competitive headline rate to build their tax-free savings may find this an enticing option as they have instant access to their cash.”
However, she pointed out: “It is crucial that consumers consider their withdrawals carefully as the rate drops significantly to just 0.75% if four or more withdrawals are made.
“In more positive news, further additions are permitted at any time into the account and investors can choose to split their Cash ISA savings across multiple ISAs within Moneybox’s range. On assessment, this deal earns an Excellent Moneyfacts product rating.”
People living in the UK can currently save up to £20,000 a year in an Individual Savings Account (ISA) without paying tax on the interest earned.
Easy access Cash ISAs provide savers with these tax-free benefits, but terms typically mean there are few to no withdrawal restrictions. This makes these accounts beneficial for those needing to dip into their pots. Here are the top five available at the time of writing.
What else is out there?
In the easy access Cash ISA sector, Chip places just behind Moneybox in the top tables with an Annual Equivalent Rate (AER) of 4.99%. The rate includes a 0.89% bonus for 12 months.
Savers can launch the account with a minimum deposit of £1, and withdrawals are not restricted. Interest is paid monthly.
Plum’s Cash ISA offers an AER of 4.98% on deposits of £100 or more. This rate includes a 1.67% bonus for the first 12 months, and interest is also paid monthly. However, like Moneybox, Plum also imposes a lower interest rate if you make more than three withdrawals in a calendar year.
Trading 212 also places competitively with an AER of 4.86%. The deal includes a bonus rate of 0.76% for 12 months, and savers can launch the account with just £1. Interest is paid monthly, and withdrawals are not restricted.
