A little known bank – set up to help fund the expansion of a church movement – has stepped up with a new one-year cash Isa offering a top rate of 1.2pc.
The rate is not fixed, but guarantees to pay 0.95pc above Bank Rate, currently 0.25pc.
The Isa best-buy tables are littered with small and unfamiliar providers offering top rates while the high street banks such as Lloyds, Halifax, RBS and NatWest are nowhere to be seen.
The latest addition comes from Kingdom Bank, which launched in 2005 as a subsidiary of the Assemblies of God Property Trust, a registered charity which funds the building of churches. As well as savings accounts, the bank also offers mortgages and insurance.
Kingdom Bank is authorised by the Financial Conduct Authority and deposits up to £85,000 are protected by the Financial Services Conduct Authority.
Customers must have at least £5,000 to open the one-year Base Rate Plus Isa which can only be done by post.
The 1.2pc rate is top for one-year Isas although savers could earn the same rate with Hinckley and Rugby Building Society’s notice Isa. Hinckley customers must give 120 days notice to access funds or face loss of interest.
An interesting feature of Kingdom Bank’s Isa is that customers must tie up funds for a year, but the rate is not fixed for this time.
Instead the bank promises to pay 0.95pc above the Bank of England’s Bank Rate. This is currently at an all time low of 0.25pc after it was cut last summer.