OakNorth Bank has launched a new range of fixed ISAs, and its 24-month product has earned an “excellent” Moneyfactscompare rating. The deal offers a 4.67 percent interest rate, which is applied to the savings monthly.
Commenting on the deal, Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, said: “This week, OakNorth Bank has launched a new range of fixed ISAs, including a 24 Month Fixed Rate Cash ISA.
“It grabs a competitive position in the fixed ISA market and pays 4.57 percent gross/4.67 percent AER monthly, which may be an incentive for those looking to boost their income each month.
“Investors who want to utilise their ISA allowance and are comfortable with locking their cash away for the full term may find this an appealing choice.”
However, Ms Eastell noted: “It is wise for investors to note that the account must be funded within 30 days of account approval, or it will be closed.
“Overall, this deal earns an Excellent Moneyfacts product rating.”
While OakNorth Bank may be offering the top rate for two-year fixed ISAs, the competition doesn’t fall too far behind.
The State Bank of India’s Two Year Cash ISA Fixed Deposit has an Annual Equivalent Rate (AER) of 4.65 percent on a minimum deposit of £1,000.
Interest is paid on maturity and withdrawals are not permissed. Earlier access is only allowed on closure only with 30-day notice.
No interest is paid if the account is closed before the first anniversary, and savers will face a one percent loss of interest if the account is closed after the first anniversary.
Close Brothers Savings’s Two Year Fixed Rate Cash ISA places next with an AER of 4.6 percent.
A larger minimum deposit of £10,000 is required to open the account and interest is paid yearly. Withdrawals are also not permitted until the account matures. Earlier access is only allowed on closure but will be subject to a 150-day loss of interest.
Commenting on the market, Lucinda O’Brien, Money.co.uk’s savings expert, said: “It’s the start of a new tax year and there are some big changes to the ISA structure.
“Previously, you could only open one type of each ISA, but now you can split the £20,000 allowance across multiple accounts.
“This gives savers more flexibility as they can open an easy access and a fixed-rate cash ISA, moving money to suit their different savings goals. Plus, they have the opportunity to chase the best rates.”
