Shawbrook Bank launches new market leading cash Isa paying 4.63% 

Shawbrook Bank has launched a new market-leading cash Isa — paying 4.63 per cent for its one-year fixed-rate Isa bond. 

It also released an easy-access cash Isa yesterday that pays a chart-topping 3.78 per cent.

Last month, the Bank of England raised the base rate to 4.5 per cent — its highest rate in 14 years. It is due to meet again next Thursday. 

But despite the hike, High Street banks have been slow to follow the lead to increase rates for cash Isas or other savings accounts.

Rachel Springall, a finance expert at rates scrutineer Moneyfactscompare, says: ‘As is often the case, it is so-called challenger banks that lead the charge by offering the best rates — and this new deal from Shawbrook will hopefully not be the last. It indicates an expectation the base rate is not about to suddenly fall.’

New deals: Shawbrook Bank has launched a market leading one-year fixed cash Isa paying 4.63% and an easy-access cash Isa yesterday that pays a chart-topping 3.78 %

The Shawbrook one-year Isa bond comes with a minimum balance requirement of £1,000. It is followed by UBL and OakNorth Bank — which both pay 4.62 per cent.

Those who would prefer the freedom of being able to dip in and out of their Isa savings over the year can opt for the Shawbrook easy-access Isa paying 3.78 per cent. That also requires a minimum balance of £1,000.

Leeds Building Society has a limited issue online access Isa paying interest of 3.75 per cent. It is followed by the Charter Savings Bank easy-access cash Isa at 3.65 per cent.

Savers can deposit as much as £20,000 a year into an Isa — putting all of it in cash, or stocks-and-shares investments, or split it between the two. 

Experts predict the base rate could remain stubbornly high in the coming months as the Bank of England tries to keep a lid on inflation. 

The latest Consumer Prices Index of inflation for April showed that shopping prices were rising at 8.7 per cent.

Check the best cash Isa rates in our savings tables