2014/15 cash Isa early-bird deals
Savers looking to transfer their easy-access Isas taken out in previous years can earn 1.65% tax-free with a new account from BM Savings, launched on 7 April. The minimum investment is £20,000. The rate drops to 0.5% after the first 12 months.
Top easy-access deal for smaller amounts come from Metro Bank at 1.65% on £1 or more and Santander at 1.6% on a minimum £1,000.
On fixed-rate deals you can earn 2% with Halifax for 18 months or 2.05% for two years. Nationwide and Santander also pay 2.05% for two years.
On taxable accounts the top easy-access rate comes from Britannia, part of Co-op Bank, at 1.5% before tax (1.2% after tax), but you are limited to four withdrawals a year.
The best deal with no withdrawal restrictions and no short-term bonus come from Leeds, Yorkshire and Newcastle building societies and National Savings & Investments Income Bonds. All three pay 1.25% (1%).
Best taxable fixed rate deals are Britannia, paying 1.71% (1.37%) fixed for one year, while State Bank of India and Shawbrook Bank pay 2.1% (1.68%) for two years.
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.