The fixed rate cash ISA rate in the UK has reached 1.5% for the first time in over a year, according to reports in The Telegraph.
According to the new figures, savers prepared to hold their cash money for two years can now reach return levels of 1.5% per year, a rate that hasn’t been available in the UK for more than 13 months.
The new 2 year fixed rate cash ISA offering the rates has been put on the market by Birmingham Midshires. Birmingham Midshires is one of the divisions within the Bank of Scotland, and the rate is much higher than the comparable account by the UBL, which currently pays 1.36%.
May 2016 was the last month in which any two year ISA offered a rate as high as 1.5%, but the following month’s EU referendum result caused the Bank of England to cut rates, and ISA rates have been lower since.
Birmingham Midshires account is available both online and via phone, with the minimum deposit just £1 and the maximum in-keeping with the current maximum ISA allowance of £20,000. Both existing and new Birmingham Midshires customers can open the ISA.
This news came in the same week in which it was announced that more than one million help to buy ISAs have been opened since the scheme first started, back in 2015.
Speaking on behalf of the Treasury, Economic Secretary to the Treasury Stephen Barclay noted that reaching one million accounts showed the product’s overall success in helping to get more first time buyers onto the market.
“Our help to buy schemes continue to prove hugely popular across the country, as we support people to get on in life and achieve their dream of climbing the housing ladder,” Mr Barclay said.
It’s estimated that approximately 1,500 new help to buy ISAs have been opened each day since the scheme began. According to Money Saving Expert, Barclays currently offer the best rate on one of the accounts, with a 2.27% interest rate available to consumers.
Under the current plans, help to buy ISAs will continue to be available to first time buyers until 30 November 2019.Last updated: August 23rd, 2017