United Trust Bank has adjusted the interest rate on its Cash ISA One Year Bond to 4.25 per cent.
The fixed-rate ISA has earned an "excellent" rating from Moneyfactscompare for its competitive offering.
Caitlyn Eastell, spokesman at Moneyfactscompare.co.uk, said: "United Trust Bank has reduced the rate on its Cash ISA One Year Bond this week.
"Now paying 4.25 per cent AER, the deal maintains a prominent position in its sector despite the reduction and may well entice savers looking to take advantage of their ISA allowance."
Savers are able to access the cash in this account if needed, however, Eastell pointed out that this "should be considered carefully" as it will be subject to a 180-day loss of interest penalty.
She added: "The deal earns an Excellent Moneyfacts product rating."
Britons are on the hunt for the accounts with the best savings interest GETTYFixed-rate Cash ISAs have gained popularity in the current high-interest rate environment. Cash ISA savers poured £4.2billion into tax-free accounts in March 2025, according to official Bank of England data.
This represents a 31 per cent jump compared to March 2024, when savers deposited £3.2billion. While there is typically a rush to utilise ISA allowances before the tax year ends on 5 April, this year's surge was particularly pronounced.
The significant increase came amid widespread speculation that the government might reduce the current £20,000 ISA allowance to £4,000.
Laura Suter, director of personal finance at AJ Bell, explained: "Rumours that the Government was poised to slash cash Isa allowances in the Spring Statement sparked a rush to the tax-free accounts.
The Treasury's Spring Statement document revealed the Government was considering reforms to cash ISA
GETTY"There's usually a spike in people stuffing their ISAs before the tax year end, but the speculation around changes to ISAs put the rockets under that this year."
The Treasury's Spring Statement document revealed the Government was considering reforms to cash ISAs after weeks of speculation. No changes have materialised yet, providing temporary relief to savers.
Speculation is growing that the Bank of England may accelerate interest rate cuts amid recession fears, prompting savers to lock in high rates while available.
Cash ISAs have been offering competitive rates since early 2025, with top headline rates currently paying up to 5.71 per cent.
The average easy-access ISA rate peaked at 3.4 per cent in October 2023 before falling to two per cent in March 2025.
GETTYThe average easy-access ISA rate peaked at 3.4 per cent in October 2023 before falling to two per cent in March 2025.
Savers interested in United Trust Bank's offering will need a minimum deposit of £5,000 to open the account, with interest paid on maturity.
The account allows transfers in from existing cash ISAs, providing flexibility for those looking to consolidate their tax-free savings.
