Moneybox has increased the interest rate on its easy access Cash ISA to 5.17%, earning an “excellent” Moneyfactscompare rating.

The interest rate includes a 0.45% bonus for 12 months and savers can launch the account with a minimum deposit of £500.

Interest is paid on the anniversary of opening and three withdrawals are allowed per calendar year. A lower interest rate of 0.75% AER (variable) will apply if the account balance is less than £500 or a fourth withdrawal is made.

Commenting on the deal, Caitlyn Eastell, spokesperson at Moneyfactscompare.co.uk, said: “This week, Moneybox has increased the rate on its Moneybox Cash ISA.

“The deal maintains the market-leading position when compared against its peers. It now pays an attractive 5.17%, which includes a bonus of 0.45% for the first 12 months, so savers would be wise to review after this period.

“Savers looking for flexibility and instant access to their savings pots may find this an enticing option as withdrawals and further additions are permitted.”

However, she pointed out: “Savers should note that only three withdrawals can be made per year before a lower rate is paid. Overall, this deal earns an Excellent Moneyfacts product rating.”

While Moneybox may be offering the market-leading rate, competition doesn’t fall too far behind.

Offering more flexibility to dip into funds, Trading 212 easy access Cash ISA pays an Annual Equivalent Rate (AER) of 5.15%.

There is no minimum deposit requirement and interest is paid daily. There are also no limits to withdrawals.

Plum’s Cash ISA falls just behind, which pays an AER of 4.92% on deposits over £100. Interest is paid monthly, however, a lower rate will apply if more than three withdrawals are made in one calendar year.