The account has been rated as ‘excellent’ by Moneyfactscompare (Image: Getty)
Brits can currently save up to £20,000 per year in a Cash ISA to earn tax-free interest on their money, and Monument Bank’s account allows savers to put away anything from £10,000 up to the annual limit. Savers will need to deposit a minimum of £10,000, so it suits someone who is happy with parting with a large chunk of money.
Read more: Reeves says ‘I’m going to be straight with people’ in new warning
Read more: Martin Lewis delivers verdict on 90p bills discount dispute
However, withdrawals are permitted without penalty, so it can be accessed for a rainy day, and replacing funds will not affect your £20,000 tax-free allowance.
Commenting on the deal, which is available to new customers, Caitlyn Eastell, personal finance analyst at Moneyfactscompare.co.uk, said the withdrawals were an attractive part of the deal.
“This week, Monument Bank has launched a new Easy Access Cash ISA Boosted Rate. The account pays an inflation-beating 4.28% AER, and it takes a prominent position in the top charts when compared to its peers.
“However, savers should note they will need at least £10,000, and the rate includes a 0.54% AER bonus. It would be sensible to review the deal once it expires in 12 months.
“To qualify for the rate, deposits must be new money to the institution. Investors who may need to dip into their pots may also be pleased to note that they have unlimited withdrawals with no penalty, which is sure to add to its appeal.
“Overall, this deal takes a position as a Moneyfacts ‘Best Buy’ and earns an Excellent Moneyfacts product rating.”
Transfers are permitted from Cash ISAs, but any money added to the account must be new to the bank.
How do other accounts compare?
Plum is offering a 4.61% rate on its easy access Cash ISA, which includes a 12-month bonus rate of 2.05%, so potential earnings will drop significantly after a year. Savers can open this with £1.
The next best rate is from Moneybox, according to Moneyfactscompare, with a 4.3% Cash ISA. It also includes a 12-month bonus, which is much lower at 0.82%. The minimum opening amount is £500.
Tembo Money is offering the same rate as Moneybox, with a slightly higher 12-month bonus of 1.5%. The minimum opening amount is just £10 for this account.
