Building Society launches Cash ISA with 4.85% interest rate and earns 'excellent' rating
The new Cash ISA deal secures a "competitive" position within its sector.
Marsden Building Society has launched a new easy access Cash ISA with a 4.85 percent interest rate, earning an “excellent” Moneyfactscompare rating.
Savers need to invest a minimum deposit of £5,000 to launch the Onlne Cash ISA (Issue Four) and interest is paid annually on April 5.
Cash ISAs are growing increasingly popular, as these savings accounts enable people's money to grow without paying Tax on the interest above the Personal Savings Allowance (PSA).
Easy access ISAs provide the same tax benefits but offer the flexibility to withdraw money without penalties. This feature is particularly useful during the current period of high living costs when funds may need to be readily accessible.
Commenting on the deal, Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, said: “Marsden Building Society has launched a new Online Cash ISA this week, paying 4.85 percent.
What is an ISA?
ISA stands for Individual Savings Account.
The main difference between an ISA and other savings accounts is it offers tax-free interest payments.
The ISA allowance for the 2024/25 tax year is £20,000.
You can have a cash ISA - including a Help to Buy ISA - a stocks and shares ISA, an innovative finance ISA, a Lifetime ISA or a mixture of them all.
You must save or invest by April 5 - the end of the tax year.
“The deal secures a competitive position when compared to its peers and is available to those who have a minimum initial deposit of £5,000.
“Savers looking for flexibility with their ISA cash may find this an enticing deal as it allows unlimited withdrawals and further additions.”
However, Ms Eastell noted: “Investors may wish to note that all funds withdrawn cannot be replaced in the same tax-year.
“It is also worth considering that transfers in are permitted on external transfers only. Overall, the account earns an Excellent Moneyfacts product rating.”
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But while Marsden Building Society may be offering a more appealing deal, it isn’t quite topping the leaderboard yet.
Trading 212 is offering the market-leading easy access Cash ISA with a five percent Annual Equivalent Rate (AER). There are no withdrawal restrictions and interest is paid daily.
Plum’s Cash ISA falls just behind with an AER of 4.92 percent. The interest is tiered: three percent is paid on balances from £1, while 4.92 percent is paid on balances from £100 and above. Interest is paid monthly and up to three withdrawals are permitted before a lower rate is applied.
