Moneybox has raised the interest rate on its Cash ISA to 4.39%, leading to an “excellent” rating by experts at Moneyfactscompare.co.uk. The savings provider’s rate is a “market leader” and allows holders of the account to make three withdrawals per year.
Caitlyn Eastell, Personal Finance Analyst at Moneyfactscompare.co.uk, said: “Moneybox has increased the rate on its Moneybox Cash ISA this week, taking the market-leading position when compared to its peers. The account now pays 4.39% AER, and interest is paid monthly so this may be an enticing option for those wanting to boost their income.”
Ms Eastell warned savers should note the ISA includes a 0.94% AER bonus for 12 months so it is important to review the deal regularly.
She added: “Savers are only able to make a limited number of withdrawals. If they exceed the three penalty-free ones they will see the rate drop significantly to just 0.75% AER.”
The expert said that in more positive news further additions are allowed at any time into the account and investors can choose to split their Cash ISA savings across multiple ISAs within Moneybox’s range.
She said: “On assessment, this deal earns an Excellent Moneyfacts product rating.”
Moneybox’s Cash ISA rate is 4.30% gross, 4.39% AER payable monthly. It includes a 0.90% gross, 0.94% AER bonus for 12 months.
There is no notice term and the minimum opening amount is £500. The maximum amount you can pay in is the standard ISA limit of £20,000. You can transfer into the ISA from other Cash, Stocks and Shares, Help to Buy and Innovative Finance ISAs.
Transfers out of Moneybox’s Cash ISA are also permitted. You can open account online or via the provider’s mobile app.
The account can only be managed online and via Moneybox’s mobile app. The minimum age to open an account is 18 and the Cash ISA is only available to new customers.
Investors can also choose to split their Cash ISA savings across multiple ISAs within Moneybox’s range.
While Moneybox and Plum’s products are in the top three of the best Cash ISA rates, the highest rate at the time of writing according to Moneyfactscompare.co.uk‘s ranking is Trading 212’s.
It offers a Cash ISA interest rate of 4.40%, with interest paid monthly and no notice period. The rate includes a 0.80% bonus for 12 months. You can open an account with £1, but cannot transfer in from other ISA accounts.