Virgin Money raises interest on Easy Access ISA to market-leading 3%

Banks and building societies have been increasing interest rates across accounts to offer customers higher returns while finances are squeezed by high inflation rates. Virgin Money is the most recent to have upped interest on its easy access cash ISA account to a market-leading three percent.Cash ISAs are a popular type of savings account amongst Britons, as they come with additional perks and benefits.Optimally, these accounts enable savers’ money to grow without having to pay tax on the interest above the Personal Savings Allowance (PSA), and they typically offer higher returns than other savings accounts.Generally, ISAs prohibit early withdrawals but with an easy access account, savers are usually afforded instant access to their cash with minimal restrictions.While banks are increasingly competing for higher rates to attract customers, Virgin Money is currently topping the board with its new Easy Access Cash ISA Exclusive account.READ MORE: Grandchildren could get a £40,000 ‘head start’ through investment Virgin Money increases interest rate on easy access ISA to market-leading 3% (Image: GETTY)After upping the rate for the second time in two months, savers will have access to the new three percent Annual Equivalent Rate (AER) from Friday, November 4.The rate increase follows the Bank of England’s latest Base Rate increase to three percent – the biggest hike in more than three decades – and offers a market-leading rate for customers looking to maximise the return on their savings.The account is only available to eligible current account customers. This includes those from Virgin Money, Clydesdale Bank or Yorkshire Bank.DON’T MISS: UK to face longest recession since the 1930s [INSIGHT]Martin Lewis on what Bulb customers moving to Octopus need to do [EXPLAINED]’Rate rise will hurt but at least BOE and Government fight is over’ [ANALYSIS] Cash ISAs typically over savers the highest returns (Image: EXPRESS)Savers can invest up to £20,000 in the current tax year, and there’s no limit on previous years’ ISA transfers.However, it should be noted, people can only subscribe to one Cash ISA in any tax year.People who want to transfer their current year’s subscriptions will have to transfer the full amount.