Money app Plum has launched a cash ISA offering a market-leading 5.15 percent interest rate.

Savers can put away up to £20,000 a year in the account, which is the maximum a person can put into ISAs under the current allowance.

The easy access account can be opened with as little as a £1 deposit and people can transfer in their existing ISA funds into the account.

Plum CEO and fouder, Victor Trokoudes, said: “We believe in rewarding savers, and that’s why we’re really excited to be launching our market-leading cash ISA.

“Cash ISAs aren’t a new concept, but we’ve reinvented it by doing it the smart way, so savers can also benefit from Plum’s automation.

“You can open an account in just a few taps and manage it easily in the app, alongside your other savings and investment tax wrappers.

“Customers can have peace of mind from knowing their money is secure, while also benefiting from the £20,000 ISA allowance. And they know they are getting the best rate with Plum.”

At the time of writing, there are several other providers offering cash ISAs with rates above five percent, including Moneybox, Chip, Zopa and Virgin Money.

Savers have just two weeks to max out their ISA allowance for this year with the new tax year starting on April 6.

The tax-free savings vehicle is exempt from any tax on interest or investment growth, and there is no income tax to pay on income derived from an ISA.

Mr Trokoudes said: “Our goal since day one has been to give customers the best tools to maximise their money.

“It’s brilliant that people can now get decent returns on cash savings. But high interest, coupled with many people moving into a higher tax bracket, means tax on savings is becoming more of an issue.

“This isn’t right – everyday savers shouldn’t have to lose out on the tax front just because they want their money to be accessible in cash.”

Chancellor Jeremy Hunt announced in his Spring Statement plans for a British ISA, providing an extra £5,000 allowance for savings to go into UK companies.

The Government is running a consultation on the plans which will last until June.

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