Aldermore tops cash ISA charts
Aldermore has crashed into the top of the savings charts with a 60-day notice cash ISA paying 3.15%.
It has also increased the interest on its one-year fixed-rate cash ISA from 3.2% to 3.35%, making it the best-paying one-year account on the market.
There are no bonus interest periods on either account so the interest rate on the fixed account will remain the same during the term, while the 60-day account is guaranteed to remain above the Bank of England base rate by 1.75% until 1 March 2013.
If you were to open the one-year account and save £5,340 this would generate £178.89 tax-free interest in a year, while savings of £30,000 would earn interest of £1,005.
Both of these accounts have a minimum deposit of £1,000 and accept transfers from other ISA providers so you can move money into the accounts easily and without penalty.
The variable account allows unlimited deposits up to the ISA limit for the year and you can withdraw money early as long as you give 60 days' notice. If you need to withdraw your money from the fixed-rate account you can but this will mean a penalty of 120 days' loss of interest.
Peace of mind
"Aldermore's one-year fixed-rate bond is not only a top paying rate but with such transparency, it offers complete peace of mind," says Rachel Thrussel, spokesperson for Moneyfacts.
Simon Healy, head of saving for Aldermore, says: "Transferring balances from lower paying accounts into an Aldermore cash ISA not only makes sense in maximising your tax-free allowance but is easy too – accounts can be opened in minutes online, by phone or by post, and with our guaranteed rates, you can be sure of your returns."
As the ISA season gets under full swing, Aldermore has successfully topped the charts for both fixed-rate and instant-access cash ISAs. These accounts give you the flexibility of transferring in money from another account, penalty free, and allow you to access the money in the short term.
Unusually, there are also no bonus periods to watch out for so the rate you see is the rate you'll get. This is a good option for savers wanting to get the best rate possible while having the flexibility of accessing their money after a short time period.
Invidivual Savings Accounts were introduced on 6 April 1999 to replace personal equity plans (PEPs) and tax-exempt special savings accounts (TESSAs) with one plan that covered both stockmarket and savings products, the returns from which are tax-exempt. The ISA is not in itself an investment product. Rather, it’s a tax-free “wrapper” in which you place investments and savings up to a specified annual allowance where the returns (capital growth, dividends, interest) are tax-exempt (you don’t have to declare ISAs and their contents on your tax return). However, any dividends are taxed within the investment, and that can’t be reclaimed.
Also referred to as the bank rate or the minimum lending rate, the Bank of England base rate is the lowest rate the Bank uses to discount bills of exchange. This affects consumers as it is used by mainstream lenders and banks as the basis for calculating interest rates on mortgages, loans and savings.