While high inflation continues to erode money purchasing power, savers will want to invest their cash in the savings accounts offering the highest returns.

Virgin Money is currently leading the market for one-year fixed ISAs with 5.8 percent interest, and there is no minimum investment amount to get started.

Cash ISAs offer a number of additional savings benefits, such as allowing up to £20,000 to be deposited per year without having to pay tax on the interest above the Personal Savings Allowance (PSA).

ISAs that offer a fixed rate also help add some more certainty to savings as it allows savers to lock in the interest offered at the time of opening, which works well for account holders hoping to save long-term.

However, these accounts can come with a few more restrictions, like penalty charges for early access or transfers.

Savers can open Virgin Money’s One Year Fixed Rate Cash ISA Exclusive (Issue 6) online or in-store, and they must be UK residents aged 16 or over.

People must also have a current account with Virgin Money, which was opened on or after December 4, 2019. Savers also qualify if they originally opened their current account with Clydesdale Bank, Yorkshire Bank, or B such as a Signature Current Account.

Interest is calculated daily and applied at maturity, which falls on September 30, 2024. Withdrawals are permitted but money cannot be put back in. However, any withdrawals made within the fixed rate period are subject to a charge equivalent to 60 days’ loss of interest on the amount withdrawn.

Savers with Virgin Money can also have access to special deals across the wider Virgin Group that can help people save on everyday essentials, days out and holidays.

But while Virgin Money may be topping the leaderboard of one-year fixed ISA accounts, the competition isn’t too far behind. Shawbrook Bank’s One Year Fixed Rate Cash ISA Bond (Issue 80) is offering an Annual Equivalent Rate (AER) of 5.78 percent.

The account can be opened with a slightly larger minimum deposit of £1,000 and interest is paid on the anniversary.

Savers must be aged 18 and over and earlier access will be subject to a 90-day loss of interest.

Falling just behind Shawbrook is UBL UK’s One Year fix with an AER of 5.77 percent. Savers must be aged 18 or over and have at least £2,000 to invest.

Interest is paid on maturity and earlier access on closure is only subject to a 90-day loss of interest.