Fixed ISA rates slashed - grab the top rates while you can

Fixed cash ISA rates are coming down amid interest rates freezing and falling inflation. Here’s why you need to grab the top rates before they get pulled

Roller Coaster of interest Rates And Inflation
(Image credit: DNY59)

Despite the attractive tax wrapper, cash ISAs have historically received a poor reception from savers due to their poor rates. But the last two years have seen rates on both savings and ISAs creep up, allowing cash savers to enjoy tax-free returns with rates hitting 6%.

While banks have been slow to pass on interest rate hikes despite 15 consecutive base rate hikes, competitive rates have returned to the ISA market and saving rates on some accounts now surpass inflation for the first time in two years

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Bank providerOld rate AERCurrent rate AER
Shawbrook5.83%5%
UBL UK5.77%5.3%
Virgin Money5.76%5.31%
Paragon Bank5.75%5.2%
Aldermore 5.71%5.4%

Vaishali has a background in personal finance and a passion for helping people manage their finances. As a former staff writer for MoneyWeek, Vaishali covered the latest news, trends and insights on property, savings and ISAs.

She also has bylines for the U.S. personal finance site Kiplinger.com and Ideal Home, GoodTo, inews, The Week and the Leicester Mercury.