Moneybox offers 4.45% interest on Cash ISA and earns ‘excellent’ rating | Personal Finance | Finance

Savings provider Moneybox reduced the interest on its easy-access Cash ISA to 4.45% AER this week, yet the deal still earned an “excellent” Moneyfactscompare rating.

The new rate includes a fixed 0.48% AER bonus for 12 months, after which it will drop. Therefore, customers must assess their accounts at this point to ensure they’re still receiving a competitive deal. Cash ISAs have grown in popularity over the past few years as higher interest rates drag more people into savings tax thresholds. These accounts currently allow individuals to save up to £20,000 a year tax-free.

Describing Moneybox’s new offer as “attractive”, Caitlyn Eastell, spokesperson at Moneyfactscompare.co.uk, said: “This week, Moneybox has reduced the rate on its Moneybox Cash ISA. Despite this, the deal maintains a prominent position in the market.

“It now pays an attractive 4.45% AER; however, it does include a 0.48% bonus for the first 12 months, so it is important savers review the rate when this expires.”

She noted that savers looking for a tax-free income boost may be pleased to see that interest is paid monthly. Only limited access is permitted, so it is crucial that consumers consider any withdrawals carefully, as the rate drops to just 0.75% AER if four or more withdrawals are made.

Ms Eastell continued: “In more positive news, further additions are permitted at any time into the account, and investors can choose to split their Cash ISA savings across multiple ISAs within Moneybox’s range. On assessment, this deal earns an Excellent Moneyfacts product rating.”

Savers must be aged 18 or over and UK tax residents to open the account, which can be launched with a minimum deposit of £500.

What else is out there?

Two accounts place just ahead of Moneybox on the easy access Cash ISA table, with Chip currently taking the top spot.

Offering an interest rate of 4.7% AER, savers can launch Chip’s Cash ISA with a minimum deposit of £1. The rate includes a 1.6% bonus for 12 months, and interest is paid monthly. There are no restrictions on withdrawals, making this account a good option for those in need of more flexibility.

Tembo Money is just behind with an interest rate of 4.64% AER. To launch, you must make a minimum deposit of £10, and interest is paid monthly. With this account, withdrawals are also not restricted.