United Trust Bank offers new ‘excellent’ 4.25% interest rate on Cash ISA | Personal Finance | Finance

United Trust Bank has changed the interest offered on its fixed Cash ISA to 4.25%. While this reflects a rate drop, the account has earned an “excellent” Moneyfactscompare rating for maintaining a competitive position in the market.

Savers can launch the one-year fix with a minimum deposit of £5,000, and interest is paid on maturity. Commenting on the deal, Caitlyn Eastell, spokesperson 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% 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 can invest from £5,000 and make transfers in from cash ISAs.”

Savers are able to access the cash in this account if needed, however, Ms 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.”

Fixed-rate Cash ISAs have gained popularity in the current high-interest rate environment. They offer people living in the UK a way to save without paying tax on the interest earned, up to an annual limit of £20,000 for the 2025/26 tax year.

With markets pricing in as many as three Bank of England Base Rate cuts this year, savings interest rates have been on the decline. This makes fixed-rate accounts more attractive, as they lock in the interest rate for a set term, allowing savers to secure higher returns for longer.

What else is out there?

While United Trust Bank may be offering a competitive deal, it isn’t quite topping the table in the one year fixed ISA sector. Punjab National Bank is currently taking the lead at the time of writing, with an Annual Equivalent Rate (AER) of 4.35%.

Savers can launch the account with a minimum deposit of £1,000, and interest is paid on maturity. Earlier access is permitted on closure only, subject to a 30-day notice, and no interest will be paid.

Chetwood Bank places just behind with an AER of 4.3%. Savers can launch the account with a minimum deposit of £1,000, and interest is paid on maturity. Earlier access is permitted on closure only and will be subject to a 90-day loss of interest.

Castle Trust Bank’s fixed e-ISA offers an AER of 4.26%. A minimum deposit of £1,000 is required to launch the account, and interest is paid on maturity. Earlier access is permitted on closure only and will be subject to a 90-day loss of interest.