What are the current Cynergy Cash ISA rates?
A Cash ISA is a type of savings account where you can save up to £20,000 a year without paying tax on your interest. With the right ISA, you can reduce the impact of inflation and reach your savings goals sooner. But which ISA provider is right for you? Let’s take a look at Cynergy’s current ISA rates and see how they measure up to those offered by other providers.
What are the current Cynergy ISA rates?
Cynergy currently offers four Cash ISA products, with rates ranging from 4.60% AER (variable) on their easy access Online ISA to 4.46% AER (fixed) with their 1-year Fixed Rate Cash ISA. With any of their fixed-rate Cash ISAs, Cynergy will automatically transfer your savings to a Variable Rate ISA after the fixed term has ended.
- Cynergy Online ISA: 4.60% AER/tax-free variable. Easy-access withdrawals 24 hours a day. Open with £1. You can also transfer an existing ISA when you open the account. To open an account you must be a personal banking customer, 18 years or older and a UK resident for tax purposes.
- Cynergy 1-Year Fixed Variable Cash ISA: Earn 4.46% AER/tax-free fixed for a one-year term. Cynergy will automatically open a Variable Rate ISA for you and your savings will be transferred from your Fixed Rate ISA to your Variable Rate ISA at maturity. Early closure of a fixed rate term is subject to 180 days loss of interest. If you’ve been a Cynergy customer for six months or more, you’ll automatically get its loyalty rate when you deposit or invest in an eligible product. The loyalty rate for the 1-year Fixed Variable Cash ISA is 4.47% AER/tax-free fixed.
- Cynergy 2-Year Fixed Variable Cash ISA: Earn 4.30% AER/tax-free fixed for a two-year term. Cynergy will automatically open a Variable Rate ISA for you and your savings will be transferred from your Fixed Rate ISA to your Variable Rate ISA at maturity. Early closure of a fixed rate term is subject to 180 days loss of interest. If you’ve been a Cynergy customer for six months or more, you’ll automatically get its loyalty rate when you deposit or invest in an eligible product. The loyalty rate for the 2-year Fixed Variable Cash ISA is 4.31% AER/tax-free fixed.
- Cynergy 3-Year Fixed Variable Cash ISA: Earn 4.25% AER/tax-free fixed for a three-year term. Cynergy will automatically open a Variable Rate ISA for you and your savings will be transferred from your Fixed Rate ISA to your Variable Rate ISA at maturity. Early closure of a fixed rate term is subject to 180 days loss of interest. If you’ve been a Cynergy customer for six months or more, you’ll automatically get its loyalty rate when you deposit or invest in an eligible product. The loyalty rate for the 3-year Fixed Variable Cash ISA is 4.01% AER/tax-free fixed.
Learn more: 17 ways to set and reach your saving goals
Source: Cynergy Savings Accounts and ISAs. Rates accurate as of October 2024.
What is Cynergy's best ISA rate?
Cynergy's best Cash ISA rate is 4.60% AER variable, which you can get by opening their Online ISA. It’s an easy-access ISA, meaning you can withdraw your money at any time without any penalties. Cynergy’s Online ISA could be ideal for day-to-day spending, short-term goals or emergencies. But as the rate is variable, the interest rate could change at any time. It’s also not a flexible ISA, meaning any money you withdraw cannot be replaced without using up more of your annual ISA allowance.
If you’re saving for long-term goals, you can fix your interest rate for one, two or three years and protect yourself from interest rate fluctuations. Cynergy’s fixed rates are lower, but they’re still competitive. If you choose a Cynergy 1-Year Fixed Variable Cash ISA, for example, you can earn 4.46% AER (fixed) for one year (4.47% if you meet Cynergy’s loyalty criteria). A 3-year Cynergy fixed-rate ISA will give you a rate of 4.25% AER (fixed) or 4.26% if you’re eligible for Cynergy’s loyalty rate. A fixed-rate Cash ISA won’t be suitable if you’d like to make withdrawals during your fixed period.
Is Cynergy a good ISA provider?
Cynergy offers a small range of easy-access and fixed-rate Cash ISAs offering competitive interest rates. However, you may find a Cash ISA offering a higher rate of interest with a different provider.
For a breakdown of the best deals, take a look at our guide to the best Cash ISAs on the market.
Save for your first home faster with the market-leading Lifetime ISA
Save up to £4,000 a year for your first home or retirement with a Tembo Cash Lifetime ISA. The government will boost your savings by 25%, up to £1,000 per year. You’ll also get our market-leading 4.75% AER (variable) interest rate.
Before opening a LISA, remember that withdrawals for any purpose other than buying a first home or for retirement will incur a 25% government penalty, meaning you may get back less than you paid in. Take a look at our guide to the Lifetime ISA Withdrawal Penalty for more info.
Can I have two ISAs with Cynergy?
You can only open one Cynergy Cash ISA each tax year, but you could open a second Cash ISA with a different provider. In fact, you can open and pay into as many ISAs as you like, as long as your total deposits across all of your ISAs don’t exceed £20,000 in a single tax year.
If you already have a Cash ISA and you’re not happy with the interest rate, service or terms, another option is to transfer it to another provider. To protect your savings’ tax-free status, you’ll need to get your new provider to make the switch for you, rather than transferring the money yourself.
If you’re a first-time buyer and you’re saving a deposit, a Lifetime ISA (LISA) can be even more rewarding than a traditional Cash ISA. You can save up to £4,000 each tax year and get a 25% government bonus of up to £1,000 annually. You must be aged 18-39 to open a Lifetime ISA, and can only use it towards a first-home purchase or for retirement at 60 or older.
Cynergy doesn’t have its own Lifetime ISA, but we do! With the Tembo Cash Lifetime ISA, not only will you get the 25% bonus, but you’ll also benefit from our market-leading 4.75% AER interest rate (variable).
Learn more: Can I have more than one Cash ISA at the same time?
Tax treatment depends on individual circumstances and may be subject to change in the future
Will Cynergy increase ISA rates?
Cynergy could increase its ISA rates, but there’s also a chance it might lower them. There’s no way of knowing exactly what will happen to interest rates in future, but banks and building societies tend to use the Bank of England’s base rate as a guide when setting their own rates. If the base rate goes up, ISA rates often go up too. If the base rate goes down, ISA rates also tend to fall.
Remember that if you have a fixed-rate Cash ISA, your interest rate will stay the same for the duration of your fixed term, even if Cynergy does make changes to its broader savings rates.
Learn more: Cash ISA or Lifetime ISA. Which one should I pick?
How to find the best Cash ISA Rates
It can be tempting to open an ISA with a provider you already bank with, particularly if you’ve been a customer for many years. However, this could see you missing out on better interest rates elsewhere and better customer service and terms too.
At Tembo, not only do we offer competitive ISA rates, but we’ve also helped thousands of savers with our award-winning savings app and we’re rated Excellent on Trustpilot!
How to transfer my Cynergy ISA to another provider
Transfering your Cynergy Cash ISA to a new provider couldn’t be easier! All you need to do is open an ISA with your new provider and tell them you’d like to switch. They’ll take over and complete the switch for you. Whatever you do, don’t try to move the money yourself, as this can impact your savings’ tax-free status and this year’s ISA allowance!
For example, let’s imagine that over the last few years, you’ve managed to save £20,000 in a Cash ISA. If you find an ISA with a better interest rate, open an account, and try to move the money over with a standard bank transfer, you could end up using your full £20,000 ISA allowance for this tax year, even if most of your contributions were originally made during previous tax years. You’ll also have to wait until the following tax year to deposit any more money into the account.
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Tax treatment depends on individual circumstances and may be subject to change in the future
