New best buy pays 2% AER and allows transfers.
Yorkshire Building Society has launched a market-leading one-year fixed rate Cash ISA paying 2% AER.
The account is available to open with a deposit of £100 and will allow transfers in from other providers.
Interest can be paid monthly or annually.
Savers wanting to open an account can do so in a branch, via third party agencies or by post, but not online.
However, the 2% rate is also available from other brands from the YBS Group, including Barnsley, Chelsea, and Norwich and Peterborough building societies.
Don’t delay
This is a limited issue product, which means it can be withdrawn without notice at any time.
So if you’re interested you should act fast before it disappears.
The next best rate on a one-year fixed rate Cash ISA is 1.65% available from Aldermore and Tesco Bank.
Short-term vs. long-term deals
In general the longer you are prepared to lock up your cash the better the return.
At the moment the top three-, four- and five-year fixed rate Cash ISAs pay between 2.45% and 2.85%.
But investing in these types of accounts is a gamble as you may find your savings trapped in an uncompetitive deal a couple of years in, should rates on saving accounts start to rise.
And this is looking more and more likely.
There have been strong indications the Base Rate will start to creep up from the beginning of next year. Once this happens, saving rates will follow. Read more in What next for inflation and interest rates.
So short-term fixed rate or even instant access ISAs could be a safer bet for your money.
The best short-term ISAs
Here are the top short-term and instant access ISA deals available right now.
| ISA | Term | AER | Minimum deposit |
|
Cheshire Building Society Fixed Rate Cash ISA |
Two years |
2.05% |
£100 |
| Yorkshire Building Society ISA | One year | 2.00% | £1,000 |
|
Coventry BS Branch E-ISA |
Instant access |
2.00% |
£1 |
To keep up to date on the best Cash ISA deals bookmark our best buy tables: The best Cash ISAs and Top Cash ISAs for transfers.
More on savings:
The top fixed rate savings bonds
Top instant access savings accounts
Where to earn most interest on your cash