The Cash ISA with one of the highest current returns has been named – but it isn’t offered by a high street bank. Cash ISAs are a popular way for British savers to store their money, as they can earn tax-free interest on their cash.
They often offer lower returns than Stocks & Shares ISAs, but some Cash ISAs still have very attractive rates. That is certainly the case with this one, which currently offers savers 4.49% returns. Those who put their money into the Cash ISA provided by eToro will get this boosted interest rate for 12 months, after which it will be paid to the customer.
The Daily Mail currently lists it as having the UK’s highest interest rate returns.
However, savers need a minimum deposit of £500 to place in the account. If transferring from another Cash ISA, the minimum is £15,000.
Additionally, savers must keep at least £500 in the account at all times to earn the boosted interest. Additionally, customers have to have an existing eToro account.
The attractive ISA was picked out by money experts at This Is Money. Savers must be quick if they want to take advantage of the deal, as it ends on February 28.
If you make more than three withdrawals, the interest rate drops to 3.49%. So customers need to be happy to lock away money for a year if they want to earn the full rate.
If you leave £500 in the account for the year, you will earn interest of £22.45. However, if you invest £15,000 into the account, you will earn an impressive £673.50.
Meanwhile, an investment of £20,000 would get you £898. This makes it one of the best Cash ISA deals at the moment, and an attractive offer for those wanting to up their savings earnings by the start of next year.
Etoro holds your money in a qualifying money market fund (QMMF). This means your money is invested in low-risk, short-term assets. While it is one of the best ISA rates at the moment, there are several other appealing offers for savers at the moment.
For example, Martin Lewis points out that Trading 212’s account pays 4.4%. Savers can open it for just £1 online, and it allows unlimited withdrawals, so it suits a saver who would like the safety of access to their money in case of an emergency.