Coventry Building Society launches new Poppy Bond
The best one-year fixed rate bond at 2% (1.6%) comes from BM Savings while Virgin Money pays 1.91% (1.53%). Tesco Bank and GE Capital Direct both pay 2.05% (1.64%) for eighteen months.
For two years you can earn 2.3% (1.84%) with Close Brothers or 2.25% (1.8%) with Tesco Bank, AA Savings or Investec. National Counties Building Society's new bond pays a higher 2.4% (1.92%) but your money is tied up until January 2016.
If you are willing to tie your money up for three years Coventry Building Society has launched a new Poppy Bond paying 2.6% (2.08%) fixed until April 2017.
The society will donate 0.1% of money invested in the Poppy Bond to the Royal British Legion Poppy Appeal.
Or savers can opt for a slightly lower rate of 2.5% (2%) with a higher 0.45% going to the charity.
Shawbrook Bank pays the top three-year rate at 2.65% (2.12%).
The top one-year tax-free cash Isa fixed rate comes from Virgin Money at 1.91% while the best two-year deal is 2.05% from Britannia with Halifax, Aldermore, Post Office, Principality Building Society and Skipton Building Society all offering 2%.
One easy-access cash Isas, Post Office Premier Isa is the leader at 1.8% including an initial bonus while Virgin Money, Britannia and National Savings and Investments all pay 1.75% with no bonus. You cannot transfer your existing cash Isas into the National Savings account.
The top rate on easy-access account currently comes from BM Savings, paying 1.7% before tax (1.36% after tax).
Halifax is the deposit taker on the account; you are limited to four withdrawals a year and must be prepared to move your money after a year when the rate drops to 0.5% (0.4%).
Coventry Online Saver pays 1.6% (1.28%) and is not boosted by an initial bonus but you are still limited to four free withdrawals a year.
The top deals with no withdrawal restrictions and no bonus to boost the initial rate come from Sainsbury's Bank eSaver Special issue 5 at 1.55% (1.24%) and the new Easy Access Saver from Virgin Money at 1.51% (1.21%).
This article was written for our sister website Money Observer
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.