BM Savings launches 5% ISA


BM Savings has launched a market-leading fixed-rate cash ISA for the new tax year.

At 5% for five years this is the highest-paying ISA on the market but as it's for the new tax year's allowance of £5,340, new accounts can't be opened until 6 April.

Like most of the top-paying accounts this is a limited offer, so savers will need to act quickly to benefit. However it is possible to apply now and to transfer in existing ISAs which will be credited to the account in the new tax year.

The rate is fixed for five years and a minimum deposit of £500 is required.

Withdrawals are allowed but are subject to a loss of interest of between 90 and 365 days depending on how much longer the account has left to run. The account is operated by post but you can apply by phone.

For those still looking for a home for this year's ISA allowance the best long term fixes come from Northern Rock and Skipton Building Society which both pay 4.5% for five years and Halifax, Cheshire Building Society and Derbyshire Building Society which are paying 4.4%

Read our round-up of the best ISAs available here

Before this launch there were only nine accounts around beating inflation after the current rate of inflation hit 4.4%.

Check the full range of inflation busting accounts here.

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Your Comments

This is possibly a por deal as inflation is around 5%. The Bank of England will have to raise rates this year and the lock in period of 5yrs for just 5% does not represent great value.

In a few weeks our 1st. grandchild will be born,and I would like to invest £1000 to hopefully give her a start at a later date,please could you advise me where I could put this money for the best.
I am looking at your email headed BM the best ISA RATE @ 5%for 5yrs. but dont know how or if this can be signed up for someone who as not yet been born.


Is the 5% over 5 years or is it 5% each year? Maybe I'm being silly, but then again!

Anyone know the answer?

5% is a good rate, inflation is up, but the banks are unlikely to increase rates by more then 1/2% at any one time, so it would take 5 years for the normal 3% isa to get up to 5%,