Smart money app Plum has increased its interest rate on its Cash ISA to an impressive 4.42%, making it one of the most competitive on the market. A personal finance expert has highlighted the account as one of the most attractive at the moment, giving it an "excellent" rating. Many savers are busy looking for the best Cash ISA rates right now, as Rachel Reeves announced plans to cut the tax-free limit from £20,000 per year to just £12,000 per year in April 2027 for savers aged under 65.

Finance experts have suggested that savers make the most of the higher annual allowance while it lasts and shop around for the best rates. Commenting on Plum's new deal, Caitlyn Eastell, personal finance analyst at Moneyfactscompare.co.uk, said: "The account takes the market-leading position in our best buy charts, and savers can invest as little as £1." However, it is important to note that this rate includes a bonus that lasts for 12 months, after which the interest rate will decrease.

"It's crucial that savers review their rate after 12 months once it expires," Ms Eastell said. "Adding to its appeal, savers have unlimited withdrawals, making it ideal for those who may need to dip into their deposits frequently.

"Further additions are also permitted. Overall, this deal takes a position as a Moneyfacts 'Best Buy' and earns an Excellent Moneyfacts product rating."

The interest earned is paid into the account on the first anniversary of its opening. The minimum opening amount is £1, and the maximum you can put into the account is the annual Cash ISA limit of £20,000. There are no restrictions on withdrawals.

Transfers into the account are permitted, including from other Cash ISAs, Stocks & Shares ISAs, Help to Buy ISAs, Lifetime ISAs, Innovative Finance ISAs, and Stocks & Shares LISAs. However, the bonus rate is not applicable if opened via the transfer of an existing ISA.

Transfers out are also permitted, and the account can be opened and managed via the Plum app. Savers must be aged 18 or over to open the account.

Plum is operated by Citibank. Your money, up to £120,000, is protected by the FSCS. Money Saving Expert Martin Lewis previously explained how savers could earn tax-free interest on £40,000 before the new £12,000 limit comes in next year.

He explained that now, before April 6, 2026, savers aged under 65 can add up to £20,000 to a Cash ISA. Then, between April 6, 2026 and April 6, 2027, they can add another £20,000 to a Cash ISA. After April 6, 2027, they can add £12,000 to a Cash ISA under the new limits.

Savers aged over 65 will retain the full £20,000 annual Cash ISA allowance.

Other easy access Cash ISAs placing competitively on Moneyfactscompare's 'Best Buys' list include Hargreaves Lansdown's HL Active Savings - HL ISA (powered by Shawbrook). This account offers savers an Annual Equivalent Rate (AER) of 4.30%, with a minimum investment of £1. Interest is paid monthly.

Moneybox Cash ISA offers an attractive 4.27% AER on a minimum opening amount of £5,000. There is no maximum investment, but you will only earn tax-free interest on £20,000. It includes a 0.82% bonus rate for 12 months. Interest is paid monthly.

Following that is Atom Bank's Easy Access Cash ISA with a rate of 4.25%. There is no minimum opening requirement, and interest is paid monthly.