Vida Savings launches new ISA paying 4.63% interest and earns ‘excellent’ rating | Personal Finance | Finance
Vida Savings has launched a new Cash ISA with 4.63% interest, earning an “excellent” Moneyfacts rating. The “Defined Access” ISA can be opened with as little as £10, and money can be withdrawn from the account up to four times per year.
The new account, which was described as “attractive” by a savings expert, is one of three new types of ISA that the provider has launched this week. Commenting on the deal, Caitlyn Eastell, spokesperson at Moneyfactscompare.co.uk, said: “This week, Vida Savings has launched new Fixed Rate ISAs, a Defined Access ISA and an Easy Access ISA. The Defined Access option takes a competitive position in its sector, paying an attractive 4.63%.”
Interest can be paid on the anniversary of opening or monthly, which may work well for savers looking to “supplement their income”. Ms Eastell continued: “The account can be opened with as little as £10, and further additions are permitted at any time via a nominated account.”
However, she cautioned that consumers take note when accessing their funds, as the account’s rate drops “significantly” to 2.50% AER if more than four withdrawals are made per year. Ms Eastell added: “Overall, the deal earns an Excellent Moneyfacts product rating.”
Up to £85,000 can be invested overall, and the account is protected by the Financial Services Compensation Scheme.
Cash ISAs are a popular savings option, as these accounts allow people to save up to £20,000 per year without having to pay tax on the interest above the Personal Savings Allowance (PSA).
While Vida Savings may be offering an attractive deal, the new ISA doesn’t quite top the table in the easy access sector. Moneybox is currently offering savers an Annual Equivalent Rate (AER) of 5.71% for the first three months, after which the rate will drop by 1.51%.
Savers can launch the account with £500, and interest is paid on the anniversary. Similar to Vida Savings, up to three withdrawals are permitted per year before the interest rate is reduced.
For ISA savers looking for more flexibility, Trading212 offers an AER of 5.04%. The rate includes a 0.69% bonus for 12 months, and interest is paid monthly. Withdrawals are not restricted.
Moneybox’s “Open” Cash ISA places just behind with an AER of 5.03%. The rate includes a 1.03% bonus for 12 months, and interest is paid on the anniversary. There are also no restrictions on withdrawals.
Topping rates for accounts that aren’t offering a limited time bonus, Tembo Money offers an AER of 4.8%. Savers can launch the account with just £10 and interest is paid monthly. There are no withdrawal restrictions.
Top Cash ISA rates are on the decline as the new tax year begins. Savers are being urged to switch if their loyalty is not being repaid.
Ms Eastell said: “During the run-up to the new 2025/26 tax-year, easy access cash ISAs thrived as providers battled it out for the top spot, while other ISA rates also saw some improvements. However, since its arrival, some of the top rates have tumbled, with three-year fixed ISAs taking the largest blow, seeing a 0.22% drop in just three weeks.
“Consumers still waiting to pull the trigger on a deal would be wise to act fast, as the current market leaders may not stick around for long.”
She added: “Switching accounts is key for any saver who finds that their loyalty is not being rewarded, and they should be open to considering lesser-known brands. As is the case with any account consumers wish to open, they should take time to review the terms and conditions to ensure that it suits their needs.”
