Cash ISA Rate Increase!

A cash ISA rate of 1.31% is now being offered by Charter Savings Bank, the highest rate of any in the market since 2016.

Overall, average rates are increasing, with the average variable cash ISA figure for October 2017 being 0.27%, which has risen to 0.91% now according to figures released by the Bank of England.

In February last year the highest rate available on non fixed term cash ISAs was approximately 1.05%, which grew to 1.2 to 1.25% but then remained there for a short period.

Coventry Building Society's easy access ISA briefly paid 1.4% from May 2016, a rate which has yet to be beaten.  

Be aware that Charter Savings Bank's ISA requires a 95 day notice period before making withdrawals. In addition, the ISA is not flexible, meaning that you can't freely move cash in and out of the ISA without affecting your yearly contribution allowance.

You can however, mix other types of ISA using your ISA allowance with the same provider.

The top 1 year fixed ISA from Charter Savings Bank pays 1.46%, the same as competitor Oak North Bank. Charter Savings Bank also offers the top 5 year ISA at 2.25%.

There is not a clear cut winner in terms of the highest rate offered, most providers are offering relatively similar rates at the moment.

It's ordinary for rates to rise in February as providers seek to build up deposits before the end of the tax year, however the last few pre end of tax year sessions have not reached previous levels. This year may be different however, according to Rachel Springall of Moneyfacts, as providers (especially online or mutuals) are looking to attract customers, providing some much needed competition to high street banks.

A cash buffer is an integral part of personal financial planning. Once you have this in place, you can ensure any additional funds are used to build your future financial wealth.

Contact Westminster Wealth Management today and one of our skilled advisers can construct a financial plan for you that will enable you to meet your financial goals.

The value of investments and income from them may go down as well as up and you may not get back the original amount invested.