Providers including Moneybox, Plum and Zopa are all offering a further 1 per cent interest rate or more on top of their usual rates for three months on their cash ISA products.
It means that the deals appear in comparison tables as the best on the market, but after customers have opened the account and seen the bonus expire, they are likely to be making less than they could elsewhere.
Although the base rate is still high at 4.5 per cent, it has been reduced three times in the last few months with savings rates following suit.
There has also been much speculation recently about the future of cash ISAs, with rumours that they could be scrapped or the allowance cut from £20,000 to £4,000 in the Autumn Budget.
As such, there has been a rush to maximise the yearly allowance.
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The PSA is the total amount of interest you can earn each year across all of your bank accounts (except ISAs) without paying tax.
“There is still time to navigate the top rates in the market and providers have been working hard to entice new deposits, but savers have to check the terms and conditions of any account to ensure it’s the right choice for them.
Although good news for savers looking to up their returns, they must also be aware of when the deal comes to an end.
“Easy access cash ISAs pay variable rates of interest, so these can change at any point, which is why a fixed bonus on the outset can be seen as a positive aspect, as it’s guaranteed not to change. Savers cannot afford to neglect checking their rate on a regular basis, as they can switch easy access cash ISAs whenever they want if it no longer offers a competitive return.”
Moneybox currently has the best rate on the market at 5.32 per cent, inclusive of a 1.12 per cent bonus for three months.
Plum offers a rate of 5.04 per cent on its cash ISA – inclusive of a 1.48 per cent boost for 12 months before falling.
Best savings rates
For those who may not be looking for an ISA, there are still a range of savings accounts available.
Meanwhile, the best one-year fixed rate is with Birmingham Bank with a rate of 4.67 per cent and the best two-year is with Gatehouse Bank with a rate of 4.65 per cent.
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