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The cash Isa battle is heating up again this week with several providers hiking their rates ahead of the end of the tax year.
Trading 212* has increased its cash Isa rate to 5.02 per cent, which includes a bonus of 0.52 per cent for the first three months, catapulting it to the top of This Is Money’s best-buy tables.
The offer, which is only available to new customers, will run from 14 March to 31 March.
The account can only be opened by downloading Trading 212’s app. There are no limits to how many times you can withdraw your money and Trading 212 will not reduce your interest rate for accessing your money.
Cash Isa battle: Trading 212 and Zopa have boosted their rates above 5% ahead of the tax-year end
Trading 212’s hike comes just a day after Zopa jumped to the top of our tables with a 5.01 per cent rate for its flexible cash Isa.
Zopa’s app-based account pays interest on a monthly basis, and savers are able to open accounts with just £1.
The account is flexible, meaning savers can withdraw and replace money during the same tax year without it affecting their allowance.
Withdrawing money from your account won’t cut the interest rate you are entitled to, as is the case with some other cash Isa accounts.
Zopa accepts Isa transfers from a minimum of £500, and says the money will arrive in your new Isa within 15 days.
The big snag on both Zopa and Trading 212, however, is the short-term nature of the bonus.
After three months, Zopa will pay just 3.8 per cent and Trading 212 4.5 per cent.
Chip has boosted its rates for new customers to 5 per cent for six months.
Meanwhile, CMC Invest* offers 4.85 per cent, Tembo offers 4.8 per cent. Moneybox* and Plum* both offer a 4.78 per cent rate.
This is Money’s five of the best cash Isas round-up puts CMC Invest in top spot, as the account is flexible, has unlimited withdrawals and doesn’t have a time limited bonus, while also having a top rate.
There have been rumours that the Chancellor plans to cut the cash Isa allowance in the spring statement after executives lobbied for the allowance to be reduced to promote investment.
However, reports indicate that cash Isas will face no changes in the upcoming spring statement, though reform could come later this year.
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