Visa Savings increases interest on Cash ISA to 4.31% and earns ‘excellent’ rating | Personal Finance | Finance

Vida Savings has increased the interest offered on its fixed Cash ISA to 4.31%, earning an “excellent” Moneyfactscompare rating. The interest rate, which is fixed for one year, can be paid monthly or annually. Savers can launch the account with a minimum of £100, and up to £85,000 can be deposited in total.

Cash Individual Savings Accounts (ISAs) are a popular savings option, as these accounts allow people to save up to £20,000 per year without having to pay tax on the interest above the Personal Savings Allowance (PSA). Commenting on the deal, Caitlyn Eastell, Spokesperson at Moneyfactscompare.co.uk, said: “Vida Savings has increased the rate on its One Year Fixed Rate ISA.

“As well as offering 4.31% AER on its anniversary, there is also a monthly interest option available. The account can be opened with as little as £100, and further additions are permitted for 21 days from the account opening via a nominated account.”

Although earlier access is permitted, Ms Eastell warned savers to consider any withdrawals “carefully” as they are subject to a 90-day loss of interest penalty.

She added: “Overall, the deal earns an Excellent Moneyfacts product rating.”

To open an account, you must be 18 and over and a UK resident for tax purposes. Accounts are opened and operated online, and you must provide a valid email address and National Insurance Number.

The account is protected by the Financial Services Compensation Scheme.

How does the account compare?

Topping the list for one-year fixed-rate Cash ISAs is Chetwood Bank’s Hargreaves Lansdown Active Saver, which has an interest rate of 4.32% AER.

The account can be launched 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.

Joining Vida Savings and placing just behind Chetwood Bank’s account is Shawbrook Bank’s fixed rate Cash ISA with a 4.31% AER. The account can be launched with a minimum deposit of £1,000, and interest is paid monthly. Earlier access will be subject to 90-day loss of interest.

Paragon Bank also offers a competitive deal on its 15-month Fixed Rate Cash ISA with an interest rate of 4.28% AER. Savers can launch the account with a minimum deposit of £500, and interest is paid on the anniversary. Earlier access is subject to a 120-day loss of interest.