Virgin Money has improved its place on the desk of mounted money ISAs with an interest rate improve to five.61 % and has earned an “excellent” ranking from Moneyfactscompare.co.uk.

Savers can open Virgin Money’s Two Year Fixed Rate Cash E-ISA (Issue 610) with a minimal deposit of £1 and curiosity will be paid month-to-month or yearly.

Commenting on the deal, Rachel Springall, finance skilled at Moneyfactscompare.co.uk, mentioned: “Virgin Money has changed the issue numbers and increased the rates on its Fixed Rate Cash E-ISAs, including its two-year deal.

“The deal now pays a rate of 5.61 percent yearly and secures a prominent place in its sector. Investors who want to utilise their ISA allowance and are happy to lock their cash away for two years may then find this an attractive choice.”

Ms Springall added: “Savers will also find a monthly interest option is available that pays 5.47 percent gross, which may appeal to those looking to supplement their income. Overall, this deal earns an Excellent Moneyfacts product rating.”

This account will be opened on-line by UK residents aged 16 or over and just one account is allowed per buyer.

Withdrawals are permitted, nonetheless, these will probably be topic to a cost equal to 90 days' lack of curiosity on the quantity withdrawn, if made in the course of the specified mounted time period.

Savers with Virgin Money may have entry to particular offers throughout the broader Virgin Group that may assist folks save on on a regular basis necessities, in addition to days out and holidays.

Cash ISAs include a lot of extra advantages, corresponding to enabling savers’ cash to develop with out having to pay tax on the curiosity above the Personal Savings Allowance (PSA).

ISAs that supply a set charge of curiosity may assist add one other layer of certainty to saving, because it means the financial institution or constructing society can't change the speed in the course of the size of the time period.

But whereas Virgin Money could also be providing a extra enticing deal, it isn’t presently topping the desk of two 12 months mounted money ISAs. NatWest’s Two Year Fixed Rate ISA (Issue 327) is providing an AER of 5.9 %.

The account will be opened by UK residents aged 16 and over on-line, in a department, or by cellphone with a minimal deposit of £1,000.

Interest is calculated each day and paid yearly to the ISA on the primary enterprise day in April and on the maturity cost date.

However, those that need to withdraw any funds earlier than maturity on September 4, 2025, should shut the account and an Early Closure Charge will probably be utilized.

This will both quantity to the “lower of the amount of interest earned” or a cost equal to 90 days’ curiosity.

The deal is simply obtainable till August 14, 2023, to current prospects and August 9, 2023, to new prospects. The Royal Bank of Scotland (RBS), one other model owned by NatWest Group, is providing the identical money ISA deal and phrases.