Building Society increases rate on competitive cash ISA

Teachers Building Society has increased its interest rates (Image: GETTY) Teachers Building Society has increased the interest rate on its 120 day notice Cash ISA account. The ISA is open to people from all professions and people can make unlimited withdrawals as long as they give 120 days’ notice. Interest is calculated and paid once a year on April 5. The account can be opened online. David Leek, commercial director at Teachers Building Society, said: ‘Our variable rate notice cash ISA has a market leading rate and offers savers the flexibility to access their funds if they need to. ‘Rewarding savers has always been a priority for us. Their support is crucial to the mission we’ve had since the 1960s, helping teacher first time buyers with smaller deposits take their first steps on the housing ladder.’ Teachers Building Society has increased its interest rates (Image: GETTY) The minimum opening balance for the account is £1,000 and a person can hold up to £250,000. The balance must always be at least £1,000. If it falls below this, the interest rate will drop the building society’s Extra Ordinary Account rate, which is currently 0.5 percent. Many banks and building societies have continued to increase their rates as the base rate set by the Bank of England has continually increased over the past year and a half. Teachers Building Society has increased its interest rates (Image: GETTY) The base rate is currently at five percent with many analysts predicting it could go up again as the central bank works to tackle high levels of inflation. James Blower, head of Savings at Zopa bank, said after the latest rates hike: ‘Now is a good time for consumers who are looking to start saving to start doing so, or for those who haven’t seen their savings account’s interest rate rise to shop around for alternatives. ‘As a rule of thumb, newer banks in the market typically offer higher interest yields than high street banks do; this means consumers can benefit from up to 16 times more interest if they switch now.’ He suggested savers looking at different accounts should consider not only the interest rate but also the quality of service and accessibility the provider offers to customers. Recent research found one in 10 of all savers with instant access accounts are leaving large balances of £10,000 or more in accounts earning just one percent. People in this situation could be missing out on hundreds of pounds in interest each year by not switching to accounts with better rates. For the latest personal finance news, follow us on Twitter at @ExpressMoney_.