Savers can get a leading 4.28 percent fixed rate with Paragon Bank’s Two Year Fixed Rate Cash ISA. A person will need to deposit at least £500 to open the account.
Any withdrawals before the term finishes will be hit by 180 days of lost interest. Any funds withdrawn are added back to a person’s ISA allowance for the tax year.
If a person changes their mind about opening the account, they can close the ISA within 14 days of their opening deposit.
ISAs are a popular savings option as savers do not pay tax on any interest or on any funds that are withdrawn.
People can save up to £20,000 in ISAs during a tax year across cash ISAs, stock and shares ISAs, innovative finance ISAs or Lifetime ISAs.
The Lifetime ISA may be an attractive option for younger savers as the account offers a 25 percent bonus on all deposits.
A person can deposit up to £4,000 each financial year meaning a saver will get an £1,000 bonus if they save the full £4,000, as well as interest on the total amount.
The funds have to be used towards buying a first property or can be withdrawn after a person turns 60.
A person has to be aged between 18 and under 40 to open an account and they can only save into their Lifetime ISA until the age of 50.
Many banks and building societies have continually increased their interest rates as the base rate has consistently increased over the past year.
The Bank of England has continued to hike the base rate in efforts to tackle inflation, which rose to 10.4 percent in the latest figures.
Some analysts are expecting the central bank to increase the base rate again meaning savers could see their rates go up again.
Andy Townsend, head of marketplace distribution at Shawbrook Bank, told Express.co.uk previously: “The most important thing that savers can do is understand what rate they are currently on and move to a better rate if they can (making sure to check for exit penalties).
“While, previously, there has been little incentive to move money around, the opportunities to potentially benefit from significantly better returns are now more numerous.”
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