Yorkshire BS launches table-topping cash Isa
Yorkshire Building Society has launched a fixed-rate cash Isa at a tax-free 2% fixed until 31 July 2015.
It is the best short-term fixed deal and also available from its brands, Chelsea and Barnsley building societies.
The top one year rate comes from Britannia, part of the Co-op Bank, at 1.85%.
On easy-access cash Isas, Britannia pays 1.75%, Kent Reliance 1.7% and National Counties Building Society and Metro Bank both 1.65%.
On taxable accounts, the top easy access rate at 1.5% before tax (1.2% after) comes from AA Internet Saver following cuts to new savers from both Kent Reliance and Tesco Bank last week.
Britannia Select Saver 4 also pays 1.5% (1.2%) but limits you to four withdrawals a year. Kent Reliance now pays 1.45% (1.16%) to new savers opening its easy-access account.
On fixed rate deals Post Office pays 1.8% (1.44%) for 12 months and National Counties Building Society 1.76% (1.41%). BM Savings, part of Halifax, Kent Reliance, Principality Building Society. Aldermore Bank and Investec all pay 1.75% (1.4%) for one year.
Yorkshire Building Society and its subsidiaries pay 2% (1.6%) for 18 months while for two years you can earn 2.25% (1.8%) with Post Office or 2.21% (1.76%) with National Counties Building Society.
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.