COVENTRY Building Society has just launched a new easy-access cash Isa paying 1.47 per cent in interest, up from its earlier rate of 1.45 per cent.
The account narrowly beats the previous market-leading account by Kent Reliance, which offers savers 1.46 per cent in interest.
Easy access accounts mean that you won’t be charged for withdrawing your cash, unlike fixed-rate accounts where you will be charged a penalty for taking money out before the term is up.
While fixed-rate accounts offer better rates, 1.47 per cent on your savings is the best you’ll get if you’re likely to need access to your cash.
The new best buy allows you to make unlimited withdrawals, but keep in mind the account comes with a fixed bonus of 0.32 per cent until August 31 next year.
From September 1 in 2020, the interest rate will drop to 1.15 per cent.
The good news are that you won’t need more than £1 to be able to open the account, but this can only be done online.
Darren Cook, finance expert of comparison site Moneyfacts, told The Sun: “This new rate from the Coventry Building Society has improved its position within the Moneyfacts Best Buys, and it has now taken the market-leading position in the highly competitive easy access variable ISA sector.”
How do you switch Isa providers?
IF you’re in the market for a new, better paying Isa, there’s one thing you shouldn’t do.
Never withdraw money from your Isa account to put it into your new one – if you do it’ll lose its tax free benefits.
Instead you need to follow the simple transfer process.
Make sure that the new account you want to use accepts transfers (not all do) and then fill in the Isa transfer form with the new provider.
It will arrange for your savings to be transferred over, with the process taking no more than 15 working days.
And remember, you can only have one “active” Cash Isa per tax year.
“This product is a straightforward easy access ISA account that is a flexible ISA allowing the account holder to withdraw money from the account during the tax year and top it up at a later date without effecting their ISA limit,” Mr Cook added.
“It must be noted that the rate contains a 0.32 per cent bonus that will last until September 1, 2020, so it is important that the account holders make a firm note of this in their diary so that the date is not inadvertently overlooked.”
The new easy access cash Isa is not offering the highest rate we’ve seen this year – ICICI Bank offered 1.55 per cent back in January this year.
If you’re thinking about opening an Isa account then you should check out our round up of the accounts with the best rates.
Meanwhile, Martin Lewis has revealed how to earn 100 times more on your savings.