Coventry Building Society has increased the interest rate on its Four Access ISA (Online) from 4.90 per cent to 5.05 per cent tax-free per annum/AER.
It means the building society now offers the market’s highest rate for tax-efficient easy access savings.
Savers can make four penalty-free withdrawals per year, based on the day the account is opened, via the Four Access ISA (Online) account.
Additional withdrawals are subject to a charge equal to 50 days’ interest on the amount withdrawn.
Coventry Building Society savers can make four penalty-free withdrawals per year with this Four Access ISA (Online)
The account can be opened and operated online from £1.
Coventry Building Society accepts ISA transfers in from this and previous years.
A maximum £20,000 can be paid into the ISA in the current tax year, provided it’s within the person’s annual ISA allowance limit.
Daniel McDonald, Senior Product Manager at Coventry Building Society, said: “With healthy interest rates available across the market, and a personal savings allowance that hasn’t increased since it was introduced in 2016, there’s considerable demand from savers for tax-free savings with competitive rates of interest.
“The Four Access ISA gives savers a market-leading rate while providing the peace of mind they won’t get taxed on the interest.”
The Bank of England base rate has increased 14 consecutive times within nearly two years
It includes a one per cent bonus rate for the first 12 months.
Withdrawals are unlimited on this easy access cash ISA and savers can begin saving with just £1.
Skipton Building Society is also increasing the variable interest rate on another of its accounts, boosting its Single Access Saver to 5.15 per cent.
Maitham Mohsin, Head of Savings at Skipton Building Society, said: “After the Bank of England decided to hold its Base Rate last time out, it appears savings rates may have started to level off and in some product areas start to fall. Here at Skipton, we’re trying to buck the trend and are taking the opportunity to increase a couple of our rates today.
“Both of these accounts are fantastic options for savers looking to get their money working through the remainder of this year and into next, particularly if you’re not looking to totally lock your cash away for a fixed period of time.”