Cash Isa rates hit 1.05% – but savers need to act fast as Paragon Bank's online deal is unlikely to last long

By SYLVIA MORRIS, THIS IS MONEY AND DAILY MAIL SAVINGS EXPERT

Updated:

Paragon Bank has launched an online Isa paying a top 1.05 per cent,

Paragon Bank has launched an online Isa paying a top 1.05 per cent,

Paragon Bank has launched an online Isa paying a top 1.05 per cent, but the Limited Edition Easy Access cash Isa is unlikely to be on sale for long.

When Charter Savings Bank launched its Easy Access cash Isa at 1.02 per cent last month, it was on sale for just one week before the bank closed it to new savers.

Internet-based Ford Money has one of the best deals, at 1 per cent on its Flexible Cash Isa. 

There are no withdrawal restrictions and it is unlikely to be withdrawn, but your rate could change. 

Unlike some cash Isas, you can take money out and replace it this tax year without affecting your £20,000 cash Isa allowance.

Leeds BS pays a higher 1.05 per cent on its Limited Issue Online Access Isa, but there is a catch. 

The account comes to an end on October 31 next year and your money is transferred to another account. 

The society says it will provide more details nearer the time, but you could end up with a lousy deal.

Post Office Online Isa Issue 10 at 1.01 per cent looks a competitive rate. 

But once you have been in the account for a year it drops to 0.25 per cent.

Virgin Money also pays 1.01 per cent on its Defined Access E-Isa, but you are limited to three withdrawals in the year. 

If you make more, your rate drops to 0.25 per cent. Sainsbury’s Bank Cash Isa, launched at the end of last week, pays a lower 0.97 per cent. 

THE 5 PER CENT SAVINGS TRICK 

If you're fed up with paltry savings rates an interest-paying current account could help you get better returns on your savings pot.

Savers can find accounts paying as much as 5 per cent, more than double offered on the leading short-term fixed rates. 

This is Money, has a regularly updated guide to the best offers carefully chosen by its expert writers our guide to the top interest-paying current accounts

We round up some of the best deals on offer below:

The best interest-paying account for you will depend on the level of your balance and your monthly deposit amount. 

Santander 's 123 Account pays to 1.5 per cent interest on amounts between £1,000 and £20,000, but it is still a top deal for anyone with a large balance. 

It also pays up to 3 per cent tiered cashback on household bills, however it has a monthly charge of £5.

Nationwide FlexDirect pays 5 per cent interest on balances up to £2,500 - but this only for the first year. You must pay in a minimum monthly income of £1,000. 

TSB's Classic Plus account offers 3 per cent interest on the first £1,500 in your account plus you get up to £10 each month if you maintain two direct debits from the account and make at least 20 debit card payments a month (until June 2018). The account requires a £500 monthly deposit,  

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