Santander set to pull 3.3% ISA
Santander's table-topping Direct ISA 9, which pays 3.3% interest, will be pulled from the market at the end of play today.
The account currently offers the highest interest rate available on an instant access tax-free account.
But from tomorrow it will disappear to be replaced by Direct ISA 10, which will pay just 3% interest. The move will mean Santander loses its position at the top of the best-buy tables as ING Direct will take the top spot with its 3.2% cash ISA.
So, act now to capture Santander's 3.3% rate before it disappears. If you apply over the telephone you've got until 8pm tonight, and via internet you've got until 11pm.
The account requires a minimum deposit of £2,500 and the rate includes a 2.8% bonus for the first year, so make sure you switch accounts when your 12 months are up. You can apply online at santander.co.uk.
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.