Virgin Money unveils top new Cash ISAs
The challenger bank has boosted rates ahead of the launch of the new ISA limit of £15,000.
Virgin Money has launched a swathe of market-leading Cash ISAs just in time for the launch of New ISAs and their increased allowances.
The bank’s easy access ISA is now the joint market leader in terms of online ISAs, while its new fixed rates are market leaders, or at worst joint market leaders, in every category they're offered in.
What’s more, all the ISAs can be opened with just £1.
Let’s have a look at what’s new and how they compare.
Easy Access ISA
Virgin’s Easy Access ISA pays 1.50% AER, with no bonus rate. It’s not the market leader, as Coventry Building Society pays 2% on its Branch Instant ISA. However, as the name suggests this ISA can only be opened in a branch.
The same goes for both Cheshire and Dunfermline building societies’ Easy Access ISAs, which pay 1.60%. But Virgin does take joint top spot for online ISAs with NS&I and Skipton Building Society.
Here are the best buys.
|
Account |
Interest Rate (AER) |
Minimum deposit |
Bonus |
Notes |
|
Coventry BS ISA Reward |
2.50% |
£1 |
None |
Transfers and new subscriptions. Must have held Coventry BS ISA in February 2013. |
|
Coventry BS Branch Instant ISA |
2.00% |
£1 |
None |
New subscriptions only. |
|
Nationwide BS Flexclusive ISA |
1.75% |
£1 |
None |
New subscriptions only. Must hold Nationwide current account. |
|
Cheshire BS Easy Saver ISA |
1.60% |
£1 |
None |
New subscriptions only. |
|
Derbyshire BS Easy Saver ISA |
1.60% |
£1 |
None |
New subscriptions only. |
|
1.50% |
£1 |
None |
Transfers and new subscriptions. |
|
|
NS&I Direct ISA |
1.50% |
£1 |
None |
Transfers and new subscriptions. |
|
Skipton BS Online Bonus Cash ISA |
1.50% |
£1 |
0.25% for first 12 months |
Transfers and new subscriptions. |
|
Penrith BS ISA |
1.50% |
£100 |
None |
Transfers and new subscriptions. |
Fixed rate ISAs
The one-year, two-year, three-year and five-year fixed rate ISAs are all market leaders, as these tables show.
|
Account |
Interest rate (AER) |
Minimum deposit |
Length of fixed rate |
Notes |
|
3.00% |
£1 |
Five years |
Transfers and new subscriptions. |
|
|
Leeds BS Fixed Rate ISA |
2.85% |
£500 |
Five years (fixed until 30th June 2019) |
New subscriptions only. Early withdrawals of up to 25% of savings allowed without penalty. |
|
Julian Hodge Bank Fixed Rate Cash ISA |
2.85% |
£5,940 |
Five years |
Transfers and new subscriptions. |
|
Coventry BS Fixed-Rate ISA |
2.75% |
£5,940 |
Fixed until 31st May 2018 |
New subscriptions only. |
|
Nationwide Fixed Rate ISA |
2.40% |
£1 |
Four years |
Transfers and new subscriptions. |
|
2.25% |
£1 |
Three years |
Transfers and new subscriptions. |
|
|
Nationwide Fixed Rate ISA |
2.25% |
£1 |
Three years |
Transfers and new subscriptions. |
|
2.25% |
£1,000 |
Three years |
Transfers and new subscriptions. |
|
|
2.10% |
£1 |
Two years |
Transfers and new subscriptions. |
|
|
Nationwide Fixed Rate ISA |
2.05% |
£1 |
Two years |
Transfers and new subscriptions. |
|
Cheshire BS Fixed Rate Cash ISA |
2.05% |
£100 |
Two years |
Transfers and new subscriptions. |
|
Derbyshire BS Fixed Rate Cash ISA |
2.05% |
£100 |
Two years |
Transfers and new subscriptions. |
|
1.76% |
£1 |
One year |
Transfers and new subscriptions. |
|
|
Tesco Bank Fixed Rate Cash ISA |
1.65% |
£1 |
One year |
Transfers and new subscriptions. |
|
1.65% |
£1,000 |
One year |
Transfers and new subscriptions. |
|
|
Julian Hodge Bank Fixed Rate Cash ISA |
1.65% |
£5,940 |
One year |
Transfers and new subscriptions. |
Of course, the risk with opting for a longer-term fixed rate is that interest rates will rise and better ISAs will be on offer in the next year or two.
The Bank of England has indicated that when interest rates do begin to rise, they aren't going to rise too steeply. So if you do want a fixed ISA it might be worth going for a two- or three-year fix.
Don't forget that several current accounts are offering decent interest rates right now too, with the added bonus of instant access to your money.
More on savings and investing:
New ISAs: what's changed and top rates
New ISA top-up deadlines 2014/15
The best alternatives to Cash ISAs
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