Beehive Money has launched a new Cash ISA paying a 4.7 percent interest rate, earning an “excellent” Moneyfactscompare rating.

The interest rate is fixed for two years and savers need a minimum deposit of £500 to get started.

Commenting on the deal, Caitlyn Eastell, a spokesperson at Moneyfactscompare.co.uk, said: “Beehive Money has launched a new two-year fixed rate cash ISA.

“It shares the market-leading position in its sector paying 4.7 percent until July 31, 2026.

“Savers will only need to deposit a minimum of £500 and they may be pleased to see that further additions can be paid in for the duration of the issue being open.

“It would be wise for investors to carefully consider any transfers out as they are subject to 180 days loss of interest penalty. Overall, the deal earns an Excellent Moneyfacts product rating.”

Savers must be aged 18 or over to open an account and interest is paid yearly.

While Beehive Money may be offering the most attractive rate in the two-year Cash ISA sector, competition doesn’t fall too far behind.

Nottingham Building Society is also offering an Annual Equivalent Rate (AER) of 4.7 percent on its Fixed Rate ISA (Issue 190).

A minimum deposit of £500 is also required to open this account and interest is paid yearly. Earlier access is permitted on transfers out only and will be subject to a 180-day loss of interest.

Secure Trust Bank’s Two Year Fixed Rate Cash ISA falls just behind with an AER of 4.69 percent.

The account can be launched with a minimum deposit of £1,000 and interest is paid yearly. Earlier access is only allowed on closure and will be subject to a 180-day loss of interest via nominated account.

For a larger minimum deposit, Close Brothers Savings’s Two Year Fixed Rate Cash ISA offers a competitive 4.67 percent AER. Savers will need to invest a minimum of £10,000 to launch the account and interest is paid yearly.

Similar to the other accounts, savers should be comfortable investing their money for the duration of the term, as earlier access is permitted on closure only and will be subject to a 150-day loss of interest.

Commenting on the market, Lucinda O’Brien, Money.co.uk’s savings expert said: “Interest rates on all types of savings accounts remain competitive for another week, with plenty of inflation-busting deals.

“Remember, inflation now stands at two percent and the top deals are above five percent, which gives your money more purchasing power.

“This means there has never been a better time to move your money if it’s currently sitting in an account earning little interest.”