Royal Bank of Scotland fixed-rate ISA pays 4.20% AER
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by Steve Fitch
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Everyone aged over 16 can save up to £10,680 in an ISA during the 2011/12 tax year - of which £5,340 can be done in cash.
This means all interest you earn in your ISA is free of tax - so a cash ISA should always be the first home for your savings.
If you've used your cash ISA allowance for this tax year, check out our list of top savings accounts.
WHAT'S OUT THERE?
When picking an ISA, the first thing to decide is whether you want to fix your interest rate or opt for more flexibility with a variable rate.
If you want to secure the interest rate you earn on your savings, and are happy to lock your money away for a set period of time, then a fixed-rate ISA might be for you.
However, if you want to make additional deposits beyond the upfront opening deposit, or make withdrawals, then a variable-rate ISA is probably more suitable. Just be aware that the interest you earn could decrease in line with the Bank of England's base rate (currently just 0.5%).
VARIABLE-RATE ISAs
- Santander Super Flexible ISA offers a variable headline rate of 4% AER on a minimum initial deposit of £1. The ISA can be managed in branch, online or by post.
- Buckinghamshire BS Chiltern Golden Nuggets offers a 3.50% AER variable rate on a minimum investment of £10. The ISA has restricted availability and transactions can be made in branch or by post.
- Cheshire BS direct cash ISA offers a rate of 3.06% AER on a minimum investment of £1,000. Transactions can be made by post only and an introductory bonus is payable until 30 September 2013.
- Newcastle BS Bonus ISA pays 3.05% AER. Minimum investment is £1 and the ISA can be accessed in branch, by post or online.
- AA Internet Access ISA is paying 3.05% AER on initial deposits of £500. The account does not accept transfers-in from other providers. The rate includes a 1.35% bonus payable for 12-months. Interest is paid monthly or annually.
- Market Harborough BS Brigher ISA pays 3% AER on minimum investments of £5,340. The ISA can be accessed in branch, by post or online.
- Newcastle BS Big Home Saver ISA pays a rate of 3% ofr one year on a minimum investment of £1. The ISA can be accessed in branch, by post or online.
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Teachers BS Cash ISA reward will pay you a rate of 3% AER on a minimum investment of £100. The rate includes an introductory bonus of 1.25% for the first 12 months. The ISA can be accessed by post only.
- Vernon basic rate tracker ISA has a headline rate of 3% AER on a minimum deposit of £1,000. Managing the ISA can be done in branch or by post.
- Virgin Money easy access cash ISA offers a headline rate of 2.85% on a minimum balance of £1. Transfers in are accepted and transaction can be made in branch or by post.
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FIXED-RATE ISAs
FIVE YEAR
- Yorkshire Bank cash ISA fixed-rate bond Issue 14 pays a rate of 4.40% AER on a minimum investment of £2,000. Interest is paid annually.
- Clydesdale Bank cash ISA fixed-rate bond Issue 14 offers investors a rate of 4.40% AER on minimum investments of £2,000. Interest is paid annually.
- Kent Reliance Banking Services flexible fixed-rate ISA pays a rate of 4.35% AER on mimimum investments of £1,000. The ISA can be accessed in branch or by post.
- Leek United five year fixed-rate ISA offers 4.25% AER on initial deposits of £5,340. Transactions can be made in branch or by post.
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Birmingham Midshires is offering a five-year ISA offering 4.25% AER. The minimum investment is £500 and you can only manage the ISA by post. Transfers from other ISAs are permitted.
- Halifax fixed-rate ISA saver offers a 4.20% AER over five years. You will need to initially invest £500 and the ISA can be operated by phone, online or in branch.
- Coventry BS fixed-rate ISA (9) offers investors a rate of 4.10% AER to May 2016. Minimum investment is £5,340 and the ISA can be managed online, in branch, over the phone or by post.
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Julian Hodge Bank cash ISA offers 4% AER. Minimum investment is £5,340 and the ISA can be accessed in branch, by post or over the phone.
- Wesleyan Bank Limited pays a rate of 4% AER but you will have to pay the maximum £5,340 balance in straight away. The ISA can be accessed online only.
FOUR YEAR
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Halifax's Fixed Rate ISA Saver pays 4.10% AER if you are willing tie your money away for four years. Minimum transfer in for this ISA is £500.
- Governor Money Bank of Ireland fixed-rate cash ISA has a headline rate of 4.05% AER. Minimum investments are £100 and the ISA can be accessed online only. Transfers in accepted.
- Julian Hodge Bank cash ISA offers 3.75% AER. Minimum investment is £5,340 and the ISA can be accessed in branch, by post or over the phone.
- Wesleyan Bank Limited fixed-rate cash ISA pays 3.75% AER for an initial investment of £5,340. The ISA can be managed only only and transfers in are accepted.
THREE YEAR
- Natwest fixed-rate ISA Issue 38 (transfers in only) pays a headline rate of 4.20% AER on a minimum investment of £1,000. The ISA can be accessed in branch, by phone or online. Interest is paid annually.
- Royal Bank of Scotland fixed-rate ISA Issue 38 (transfers in only) offers a rate of 4.20% AER on a minimum investment of £1,000. The ISA can be accessed in branch, by phone or online. Interest is paid annually.
- Bank of Cyprus loyalty fixed-rate ISA offers a healine rate of 4.10% AER on minimum investments of £1. The ISA can be managed online, in branch, over the phone or by post.
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Aldermore has a three year fixed-rate ISA offering 3.80% AER on initial £1,000 investments. The ISA can be accessed online, by post or over the phone.
- National Countries BS fixed-rate cash ISA Issue 5 pays a rate of 3.70% AER on a minimum initial deposit of £1,000. Transactions can be made by post, in branch, over the phone and online.
- Saga fixed-rate ISA will pay you a rate of 3.70% AER on a minimum investment of just £1. Transaction can be made by post only and transfers in are accepted.
- Post Office Limited fixed-rate cash ISA offers a rate of 3.70% AER on a minimum investment of £500. Transactions can be made by post or over the phone and interest is paid annually.
- Halifax's three year saver pays 3.55% AER on initial deposits of £500. The ISA can be accessed online, in branch or by phone and there are penalties for any early withdrawl.
- Julian Hodge Bank cash ISA will pay you a headline rate of 3.50% AER. Minimum initial deposit is £5,340 and the ISA can be accessed in branch, by post or over the phone.
TWO YEAR
- Royal Bank of Scotland fixed-rate ISA Issue 37 pays a rate of 3.90% AER on a minimum initial investment of £1,000. Transactions can be may in branch, by phone or online.
- Natwest fixed-rate ISA Issue 37 pays a rate of 3.90% AER on a minimum initial investment of £1,000. Transactions can be may in branch, by phone or online.
- Bank of Cyprus loyalty fixed-rate ISA offers a healine rate of 3.80% AER on minimum investments of £1. The ISA can be managed online, in branch, over the phone or by post.
- Post Office Limited fixed-rate cash ISA pays a rate of 3.70% AER on minimum investments of £500. The ISA can be opened in branch and transactions can be made by post or over the phone.
- Birmingham Midshires savings fixed-rate ISA offers investors a rate of 3.60% AER on minimum initial investments of £500. Transactions can be made by post and interest is paid annually.
- Mansfield cash ISA bond Issue 2 pays 3.55% AER for its two year ISA on an initial investment of £500. Interest is paid annually and you can manage the ISA in branch or via post.
- Halifax two year fixed-rate ISA has a headline rate of 3.50% AER if you are willing to part with an initial deposit of £500. The ISA can be accessed in branch or over the phone.
- Governor Money fixed-rate ISA offers a rate of 3.50% AER on a minimum initial investment of £100. Transactions can be made online only.
Saving & Banking
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I have been trying to find an ISA which has returns directly linked to the bank Rate, without success. an you help?
You advertise the principality bs.Cannot find it!
Link to the Principality fixed-rate offer is below.
http://www.principality.co.uk/default.aspx?page=1809
Quote :I have been trying to find an ISA which has returns directly linked to the bank Rate, without success. an you help?
Try Santander
Is there a variable cash isa with no time period? Where money can be put in and forgot about and will adjust itself without messing about transfering etc.
Wouldn't touch Santander with a barge pole. If something goes wrong their customer service is a nightmare. You have been warned.
Barclays Golden ISA
The Barclays Golden ISA Issue 3 pays a competitive 3.25% tax free, making it a strong contender for anyone wanting to save into an ISA without losing access to their cash. The rate includes a 12 month 1.00% bonus, meaning that you should consider switching your money at the end of the first year. Barclays also pledges to change the interest rate in line with base rate, up until March 2012. That is good news for anyone expecting base rate to rise in the near future.
Only existing Barclays current account customers can open this ISA online or by phone. If you don’t have a current account with the bank, you’ll need to apply within a branch. You only need a minimum investment of £1 to open the account and you can save up to £5,340 in 2011/2012 tax year. From April 6, the cash ISA limit has risen to £5,340, in line with inflation. Unfortunately, this account does not accept transfers, so if you do have existing ISA funds from previous years, you will need to find a separate home for them.
If you have a Woolwich Offset Mortgage, this ISA account can be included in your offset savings funds.
Bryan,
The only one I have found is the Santander ISA Issue 3 paying 3.30% (of which 2.8% is a bonus for 12 months) but it tracks the Base rate for 12 months. If that should rise to even 1% your ISA will pay 3.8% from the date it rises for the balance of the 12 month period. A good account BUT shift it after 12 months!
Yes Guest I have to agree it is the worst I have ever encountered.
However, keep a record of their blunders as they happen and get you to send them a cheque for £25.00 every time they foul-up. We are at £50.00 so far and only 3 months of the year gone. It is abetter rate than some accounts I can tell you. But you must be firm with them - put it all in writing and threaten to take it further to the Financial Ombudsman - it works a treat and saves you another letter!!!
Yes .... I so agree! Be warned ... Santander are frightening ... and lets face it , it's not so much if things go wrong ... it's 'when' they go wrong! ... oh and it's also the time it takes them to own to a problem ... then start over to sort the problem!!! Run with your money before they lose it and deny all knowlege of it ever being there !!!
Steer clear of Santander at all costs. They will smile at you to get you to sign up but let there be a hitch. They will deny everything you were told even if you've got some printed evidence. You'd be better off taking a slightly less return on your money.
As well as the nuisance of the bonus, Barclays ISA does not accept transfers and Barclays have a habit of dropping their interest rates very soon after new product is opened. Santander has very poor customer service/satisfaction scores, I believe.
Halifax Bank are as bad a Santander regarding dealing with complaints. So far 10 weeks have passed and still not even an acknowledgement of my complaint about getting an ISA change updated.
i think most banks are as bad as each other these days,but the rates birmingham midshires are offering cant be sneezed at their 5% fixed rate 5 year isa seems a good deal in these uncertain times with transfer ins allowed,only downside is after your first transfer in you need to check any others you may have also made into the account have arrived as they dont keep you informed on additional transfers,but their customer services seem pretty helpful and certainly friendly, so, so far so good.
I absolutely agree, I would rather take a lower interest rate than ever get tangled up with Santander again. Appalling company.
Try the nationwide 18 month cash isa. I get 3.55% accepts transfers which only took 8 days to complete.
Try the post office for your ISA= Fixed 2 years...3.45% and allows transfers in .Also for a current account try Santander=5% for 1 year and you can have up to £2.5K in it -but you have to put in 1k per month .Get round this by opening a Halifax Reward account where you have to put 1k in every month and are rewarded with a fiver. Halifax have rates for exsisting customers or you have to have an account with them and this Reward acct usually qualifies
Santander are absolutely dreadful But I have also had poor service from the AA. The AA are currently making it v difficult to get my money off them - I am complaining to the ombudsman. Just be careful with the AA, I will certainly never deal with them again.
How about Aldermore @ 3.33% fixed 1 Year? And you can transfer in.
For future reference, The Principality Building Society are in Cardiff, South Wales, with branches throughout the principality.
The good thing with Nationwide is they pay interest on transfers from the day you do it not from when they receive the money from the other party.
I Bank with Santander, and yes like any other institution I have had the odd glich-however, on the whole I dont find them too bad especially if I get through to a call centre in United Kingdom. I have to travel quite far to get to a branch-=- this can be quite a pain, but I suppose they cant be everywhere.
I had several accounts with Santander and managed these on line , which was very good.
But as soon as I needed to speak to anyone there it was a nightmare.
I could not understand some of the advisors ( I think they must have out sourced some services abroad) and some of the info they gave me was out of date.
I have now used the excellent online set-up to get all of my savings out of there. Wont be going back.
I had a cash Isa with Santander and last year tried for 3 months to move the money to another provider. There were no tie-ins, but Santander were an absolute nightmare to deal with. After being passed from pillar to post and even tried ringing the dept direct at Bradford that dealt with their Cash Isa's - I didn't get any joy. I finally wrote a letter to the Daily Mail and at that point I received an apology from one of Santander's Customer Relations Managers and also a cheque for the 3 month's interest they had lost me.
Don't put up with poor service and make sure you receive any recompense for monies owed due to provider's not following Isa rules.
After the ineptitude shown throughout by Santander I wouldn't deal with them again under any circumstances.
Yorkshire building society have an ISA 3.4% fixed until 31st January 2013 with a monthly income option, takes some beating if you dont want too tie up your money for too long.
Have never had any problem with Santander in fact find them an excellent bank to deal with.
Be WARNED SANTANDER BANK is Spanish owed, & Spain is heading
for the same trouble as GREECE ?????????!!!!!!!!!!
I don't know where Mr. Hanson lives but the Principality is in Wales. I don't
know if its only available to people living in Wales
Asked for transfer of 2010 ISA from Santander to RBS two year ISA paying 3.45 and allowing transfer in. Transaction was completed very quickly so no delay from Santander in this instance.
I've also had repeated nightmares with Santander ~ I will never give them any business again ~ for your own sanity steer well clear of Santander
Don't forget National Savings certificates. Index linked and tax free they can beat many ISAs
I bit dissapointing to see the "bash Santander" crew out slagging them off all the time.... I do not have my current account with them but use them for ISA etc and they have been excellent.
They provide good service and outstanding interest rates.
By the way, I do all my dealings with then and everyone else on the internet.
We live in Somerset and Principality has accepted our investment so would think it's not exclusive to folk living in Wales..
3.75% for 2 years @ the Post Office!!
"Get YOU to send THEM a cheque every time they foul up"??
I want to save regular sums monthly into an ISA with a view to reaching max saving each year. Not keen on stocks and shares (current climate). Is anyone doing same? Any pitfalls? Any advice?
Unfortunately like other's, No matter how good their new products might be, I too wouldnt give Santander any custom whatsoever, I have first hand experience of their Customer ineptitude on my sons Split and subsequent transfer of Equity, wholly unsavoury experience, although he had a mortgage already with them, just to transfer his partner off the mortgage they insisted he could only do this if to put a further £12000 down.to reduce the LTV ratio.he didnt have a spare £12k! but that didnt matter to them, "rules are rules".
luckily we his parents were able to help.
He decided to take his custom to Nationwide and remortgage to rid ourselves of Santander, he too followed up by moving his House and contents Insurance away from them as well.
We will never ever have any further dealings with them.
please advise, fixed rate period Yorkshire I. S. A. is? at 4.50%.
I would give AA Savings a very wide birth ~ their customer service is absolutely atrocious ~ not what you want when dealing with your hard earned savings.
Based in Wales ~ branches all over Cardiff
Try Santander if you fancy visiting the World of Pain ~ better known as Santader customer service
I am 21years old and am in my 2nd year of uni. I'm looking to open an ISA account and am very confused on which bank to go with. I also dont understand the rates as well as if a fixed ISA or Variable is better for me. Please can anyone help me and explain it to me as if i am 5years old. Thank you
I'd agree with the comment about avoiding Santander. I've banked with a lot of banks and building societies in my time but the service from them was non existent when my account was emptied fraudulently, they even let it happen more than once in the same period! AVOID!!
The article starts: "If you're a UK taxpayer, then an ISA should be the first home for your savings"
I don't have to pay tax as I am retired but I have never had an ISA. Do I need to be a tax payer to open an ISA?
I have £70000 in a 0.25% account at the moment. How should I split my savings?