Cash Isa rates creep up with both Virgin Money and the Post Office now offering over 1.5%

By Sylvia Morris For The Daily Mail

Published: 18:39 EST, 6 October 2015 | Updated: 03:09 EST, 7 October 2015

Cash Isa rates are finally beginning to edge up — but don’t expect huge increases soon. 

Virgin Money has raised the rate on its easy-access Defined Cash Isa to a tax-free 1.56 per cent for new savers.

Post Office, where the deposit taker is Bank of Ireland, is up at 1.51 per cent. 

Slow progress: Cash ISA rates  are finally starting to creep up with deals above 1.5% coming on the market

Slow progress: Cash ISA rates  are finally starting to creep up with deals above 1.5% coming on the market

You can transfer the cash Isas you have with other providers, where the rate can be as low as 0.25 per cent, to both these accounts.

The Virgin deal restricts you to three withdrawals each 12 months. If you make any more, then your rate drops to 0.75 per cent for the remainder of the year. It is available in branches, online or by post.

HOW THIS IS MONEY CAN HELP

Post Office Money Premier Isa now pays 1.5 per cent but the rate includes a 0.85 percentage point bonus for the first 18 months. 

After this you need to move your money as your rate will drop to 0.65 per cent. The Post Office Online Isa pays a whisker more at 1.51 per cent. The bonus of 0.86 points lasts for a shorter 12 months.

The rises come just days after National Savings & Investments announced it will cut the rate on its Direct Isa from 1.5 per cent to 1.25 per cent from November 16.

The top deal with no withdrawal restrictions and no bonus comes from Nationwide’s Instant Isa Saver Issue 3 at 1.4 per cent.

On fixed-rate deals, Virgin Money has upped its one-year rate to a top 1.81 per cent while Tesco Bank now pays 1.75 per cent.

The small Mansfield BS’s new two-year deal pays a top 2.1 per cent but does not accept transfers. At Virgin Money, the rate is 2.06 per cent.

 

 

Comments (2)

Share what you think

The comments below have not been moderated.

The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline.

Add your comment

By posting your comment you agree to our house rules.

Who is this week's top commenter? Find out now