Moneybox launches market-leading savings account paying 4.65 per cent rate

It includes a bonus rate of 0.85 per cent for the first 12 months.

If the account balance drops below £500, an interest rate of 0.75 per cent AER (variable) will apply until the balance exceeds £500 again.

The cash ISA allows up to three withdrawals within each 12-month period from the date of account opening, without compromising the interest rate.

Brian Byrnes, head of personal finance at Moneybox commented: “At Moneybox we are passionate about helping people build and embed positive savings behaviours in order to grow their money and build wealth throughout life.

“With current bank rates at their highest in over a decade, it has never been more important to make sure our money is working as hard as possible.

“A Cash ISA is different from other savings accounts because any interest earned is completely tax-free, making it an ideal choice for anyone saving for longer-term goals or important life events such as getting married or raising a family.

“With a Cash ISA, you’ll have peace of mind as you watch your savings grow over time, knowing how much interest you'll earn each year.”

The Moneybox Cash ISA can be opened with a £500 deposit or by transferring an ISA from another provider.

Up to £20,000 can be deposited into the account each tax year, but this limit is shared between all other ISAs a person has.

There are no limits to the number of withdrawals that can be made from this account, but upon making a fourth withdrawal within a 12-month period, the interest rate will drop to 0.75 per cent AER (variable) for the rest of the period.

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Moneybox said the funds withdrawn would be paid out on the next available working day.

Charlie Mortimer, co-founder of Moneybox said: "In the 72 hours since we launched our Cash ISA to current customers, I am delighted to say that the product has been extremely well received, with many thousands of Cash ISAs opened and millions in funds deposited.

“The Moneybox Cash ISA complements our existing range of saving, investing, home buying, and retirement services, all delivered through one simple and easy-to-use app.

“We are proud to support a growing community of more than one million people to achieve their financial goals and build wealth with confidence, so they can enjoy life today and tomorrow.”