Coventry launches market-leading cash ISA
The ISA will be available until 31 May 2015 and there is a maximum and minimum investment of £5,760.
It's available to new and existing customers, transfers in are not permitted, nor are withdrawals and early closures will be subject to a charge.
Colin Frankline, sales and marketing director for Coventry, said: "This two-year fixed-rate ISA is ideal for savers looking for a guaranteed return on their savings whilst making the most of their tax-free allowance."
The next best buy for a two-year fixed-rate ISA is Nationwide's two-year fixed bond paying 2.5%.
For those not wishing to wrap their money up for quite so long, the best one-year fixed-rate ISA is from Aldermore and offers 2.25%.
The best variable-rate ISA is Cheshire Building Society's 2.3% ISA saver, but that includes a 1.8% bonus until 31 October 2014.
There are limits to how much you can invest in any tax year. For 2011/12, the limit is £10,680. Of that, the maximum you can invest in cash is £5,340 and the balance of £5,340 can be invested in shares (individual company shares or investment funds). If you don’t take the cash ISA allowance, you can invest up to £10,680 into a stocks and shares ISA.
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.
This is a mutual organisation owned by its members and not by shareholders. These societies offer a range of financial services but have historically concentrated on taking deposits from savers and lending the money to borrowers as mortgages, hence the name. In the mid-1990s many societies “demutualised” and became banks. One academic study (Heffernan, 2003) found demutualised societies’ pricing on deposits and mortgages was more favourable to shareholders than to customers, with the remaining mutual building societies offering consistently better rates. In 1900, there were 2,286 building societies in the UK; in 2011, there are just 51.