United Trust Bank hikes interest rate on cash ISA

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United Trust Bank hikes interest rate on cash ISA

United Trust Bank has increased the interest rate on its fixed cash ISA to 5.7 percent, earning a 'excellent' Moneyfacts rating. Savers must have at least £5k to invest and with no further deposits, the account could amass an additional £285 worth of interest in one year. Now paying 5.7 percent, the deal takes a prominent position in its sector and may well attract savers looking to take advantage of their ISA allowance, said Rachel Springall, Finance Expert at Moneyfactscompare.co.uk.

Savers must be 18 or over and a UK resident to apply for the account, which can be done online. The interest rate is calculated daily and paid annually, and earlier access will be subject to 180 days' loss of interest. United Trust Bank, founded in 1955, is a top-notch bank that offers a variety of savings accounts for individuals, businesses and organizations. The bank is a member of the Financial Services Compensation Scheme, which safeguards up to £85,000 worth of eligible depositors'savings.

While the deal is now much more appealing, it doesn't exactly top the list of one year cash ISA fixes. Virgin Money is currently the No. 1 place on the list, with an AER of 5.85 percent and there is no minimum investment amount to start, according to Moneyfacts' Best Buys list. Savers can open Virgin Money's One Year Fixed Rate Cash ISA Exclusive online or in-store, and they must be UK residents aged 16 or over. Virgin Money customers must also have a current account with Virgin Money, which was opened on or after December 4, 2019. Savers also qualify if they originally opened their current account with Yorkshire Bank, Yorkshire Bank, or B such as a signature current account.

The interest is calculated daily and applied at maturity, which falls on September 30, 2024. Withdrawals are allowed, but money can't be put back in. Any withdrawals made within the fixed rate period are subject to a charge equivalent to 60 days' loss of interest on the amount withdrawn. Shawbrook Bank's One Year Fixed Rate Cash ISA Bond sits just behind, with an AER of 5.83 percent. The account can be opened with a minimum deposit of £1,000 and interest is paid on the anniversary. Savers must be 18 and over, and earlier access will be subject to a 90-day loss of interest.