Leeds Building Society raises Cash ISA rate to 4.41%

Leeds Building Society has raised the interest rate on its Online Access Cash ISA to 4.41%. This change comes as new data reveals that many people are not switching their ISAs for better rates. In fact, 58% of people have never changed ISAs, with 35% unsure how to do so. Catherine Wray, a senior manager at the society, highlighted the growing popularity of Cash ISAs. In 2024, there was a significant rise in Cash ISA accounts, four times the number opened in 2020. With the tax year ending soon, Wray encourages savers to review their accounts to maximize their returns. To open the Online Access Cash ISA, savers need a minimum deposit of £1,000. Interest is paid annually, and there are no limits on withdrawals. Savers can deposit up to £20,000 for the 2024/2025 tax year, with the option to transfer funds from previous years. Despite the new rate from Leeds Building Society, other accounts currently offer better rates. The savings app Chip is leading with a 5.26% interest rate, which includes a bonus for new customers. Moneybox and Trading 212 follow closely behind with rates of 5.25%. ISAs allow UK residents to save up to £20,000 per year without paying tax on interest. This has become popular during high interest periods, especially as many savers face tax bills on their earnings. However, the allowance could be at risk, as some expect potential cuts in upcoming government budgets. Wray warns that changes to the £20,000 allowance highlight the importance for savers to review their options. She believes many may think transferring ISAs is not possible due to misconceptions about the process. The Leeds Building Society aims to help savers make informed decisions to grow their savings effectively.