United Trust Bank has increased the interest rate on its fixed cash ISA to 5.7 percent, earning an “excellent” Moneyfacts rating.

Savers must have at least £5,000 to invest and based on this minimum with no further deposits, the account could amass £285 worth of interest in one year.

Commenting on the deal, Rachel Springall, Finance Expert at Moneyfactscompare.co.uk, said: “United Trust Bank has increased the rate on its one-year fixed Cash ISA this week.

“Now paying 5.7 percent, the deal takes a prominent position in its sector and may well entice savers looking to take advantage of their ISA allowance.

“Savers can invest from £5,000 and make transfers in from cash ISAs, plus they can access their cash early if they so wish, subject to an interest penalty. The deal earns an Excellent Moneyfacts product rating.”

Savers must be aged 18 or over and a UK resident to apply for the account, which can be done online.

Interest is calculated daily and paid annually and earlier access will be subject to 180 days’ loss of interest.

Launching in 1955, United Trust Bank is a specialist bank that provides a wide range of savings accounts for people, businesses and charities. The bank is a member of the Financial Services Compensation Scheme (FSCS), which protects up to £85,000 worth of eligible depositors’ savings.

While the deal is now much more appealing, it isn’t quite topping the list of one-year cash ISA fixes. According to Moneyfacts’ Best Buys list, Virgin Money is currently taking the top spot with an AER of 5.85 percent and there is no minimum investment amount to get started.

Savers can open Virgin Money’s One Year Fixed Rate Cash ISA Exclusive (Issue Six) online or in-store, and they must be UK residents aged 16 or over.

People must also have a current account with Virgin Money, which was opened on or after December 4, 2019. Savers also qualify if they originally opened their current account with Clydesdale Bank, Yorkshire Bank, or B such as a Signature Current Account.

Interest is calculated daily and applied at maturity, which falls on September 30, 2024. Withdrawals are permitted but money cannot be put back in. However, any withdrawals made within the fixed rate period are subject to a charge equivalent to 60 days' loss of interest on the amount withdrawn.

Shawbrook Bank’s One Year Fixed Rate Cash ISA Bond (Issue 81) places just behind with an AER of 5.83 percent.

The account can be opened with a minimum deposit of £1,000 and interest is paid on the anniversary. Savers must be aged 18 and over and earlier access will be subject to a 90-day loss of interest.