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A battle at the top of the independent This is Money best buy cash Isa tables has continued this week, with two providers boosting rates again.
Money app Moneybox hiked its cash Isa rate for the second time in a month and now offers 5.11 per cent.
It comes with a 0.66 per cent bonus for 12 months on top of its variable rate of 4.45 per cent.
For a brief moment it topped the best buy charts, before Trading 212* once again leapfrogged to number one spot with a new 5.12 per cent rate (exclusive to This is Money readers who use the code ‘TIM’).
This rate includes a 0.22 per cent bonus rate which lasts for 12 months for new customers. If you don’t use the special code, the rate is 4.9 per cent.
Cash Isa battle heats up: Moneybox boosts cash Isa rate to near top of best buy table
The next best deal in our best buy tables comes from Plum* which pays 5.01 per cent, and Chip* which pays 4.85 per cent, which includes a 0.27 per cent for 6 months.
DIY investing platform Lightyear is also muscling in on savings with the launch of its own cash Isa, offering a rate that tracks the Bank of England base rate.
The Moneybox cash Isa can only be opened by downloading Moneybox’s app with a minimum deposit of £500.
You can only make three free withdrawals in a 12 month period with this Isa. On a fourth withdrawal, the rate drops to 0.75 per cent, which is lower than most high street banks.
If your balance dips below £500, the rate will also drop to 0.75 per cent.
You can transfer in Isas you hold with other providers and the interest is calculated daily and paid yearly.
Its newest deal comes just a month after Moneybox boosted its cash Isa rate to 5 per cent which pushed it to the top of the best buy table, after the Bank of England voted to hold the base rate at 4.75 per cent.
Moneybox now offers one of the best paying cash Isas for new customers, but the withdrawal restrictions will be a drawback for some savers.
The Trading 212* cash Isa offers a marginally higher rate, but crucially provides customers the freedom to dip into their savings more than three times in a 12 month period without interest rate penalties.
Trading 212’s Isa is flexible too, which is beneficial for savers who max out their Isa limit each year.
Both of these cash Isas are protected under the Financial Services Compensation Scheme limit of £85,000.
Moneybox splits the money over 10 ‘partner’ banks, including HSBC, Santander and Lloyds.
It says it will never put more than 50 per cent into one bank, but it means if you have a large sum in one of these banks separately, it could leave some money unprotected.
It’s a similar story at Trading 212 – it holds cash in partner banks, including Barclays, NatWest, and JPMorgan.
The battle at the top of the best buy tax-free charts has been driven by these app-based providers.
If you’re after a more traditional name with high street presence, Coventry Building Society pays 4.55 per cent. It limits you to taking money out six times a year.
Principality Building Society has pushed up the rate on its Online Bonus 5 Access Cash Isa to 4.7 per cent, which allows five annual withdrawals.
It includes a bonus of 1.55 per cent for the first 12 months.
Coventry has a new branch-based and postal version of its easy-access Isa which pays a lower 4.05 per cent.
But at Kent Reliance branches, the easy access rate has been raised to 4.56 per cent for new savers.
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