Cynergy Bank offers leading 3.2 percent instant access ISA

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Cynergy Bank currently offers the top rate for an instant access ISA, with a 3.2 percent AER (annual equivalent rate) via its Online ISA (Issue 33). A person can fill in the application for the account online in just 10 minutes, according to the bank.

Interest is calculated daily on the cleared balance and paid annually on the last working day of March.

If a customer transfers in funds from another ISA provider, the interest will be calculated from the transfer date.

ISAs can only be transferred in when opening the account and any money withdrawn during a tax year cannot be replaced.

With the 3.2 percent rate, if a person deposited £1,000, after a year they would have a balance of £1,032.

A saver can make unlimited withdrawals from the account via Online Banking to the nominated account, or to another eligible Cynergy Bank account in their name.

A person must be 18 or over to open an account and they will need to provide their National Insurance number when applying.

Britons have just two weeks to use up their ISA allowance of £20,000 for this tax year, which ends on April 5.

This is the maximum amount a person can invest in the popular savings account. Britons do not have to pay tax on interest from cash in ISAs or on income or capital gains from investments in ISAs.

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These are the other top-paying easy access ISAs at the moment:

  • Shawbrook Bank – Easy Access Cash ISA – Issue 23 – 3.17 percent
  • Paragon Bank – Triple Access Cash ISA – Issue 12 – 3.1 percent
  • Teachers Building Society – Triple Access Cash ISA for Teachers (Issue 1) – 3.05 percent
  • Coventry Building Society – HL Active Savings – Limited Access ISA (2) – Three percent
  • Teachers Building Society – Triple Access Cash ISA for Everyone (Issue 1) – Three percent.

Interest rates on many savings accounts have increased over the past year as banks and building societies have passed on the Bank of England’s increases to the base rate.

The base rate is currently four percent with many analysts predicting it will go down later this year as the rate of inflation eases.

Victor Trokoudes, CEO of Plum, spoke to about what the central bank may be planning for future changes to the base rate.

He said: “The Bank of England’s comments at their February base rate announcement suggested to many observers that interest rates may now have peaked at four percent.

“It’s no longer referring to having to act ‘forcefully’ to control inflation and it added that further rises would only be needed if there was evidence of more persistent inflationary pressures.

“This view has been reinforced by more recent comments by the central bank’s governor saying the UK economy is evolving much as the Bank expected it to.”

Inflation is expected to drop to four percent by the end of the year meaning there is less need for increases to the base rate.

Analysts at Citigroup are predicted inflation will come down even more quickly, dropping to just two percent by the autumn.

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