Kent Reliance launches table-topping fixed-rate bonds
Kent Reliance has launched top-paying one- and two-year fixed rate bonds. Its one-year deal pays 1.9% before tax (1.52% after), while those willing to tie their money up for two years earn 2.25% (1.8%) on £1,000 or more.
Close Brothers pays a higher 2.4% (1.92%) for two years, on a higher minimum of £10,000.
On easy access accounts the best deal comes from Tesco Bank Internet Saver, at 1.35% (1.08%) including a 0.6 (0.48) percentage point bonus for the first 12 months.
Britannia Select Saver 4 pays a higher 1.5% (1.2%) in the high street or through the post, but you are limited to four withdrawals a year.
GE Capital Direct has raised the rate on its GE Saver 6 to 1.04% (1.3%), with no bonus and no withdrawal restrictions.
On easy-access cash Isas, the best deal comes from BM Savings, part of Halifax, at 1.65% tax free, but on a minimum £20,000.
For this year's cash Isa allowance only, Cheshire and Derbyshire building societies pay 1.6% and National Savings and Investments 1.5%.
The top one-year fixed rate cash Isa at 1.65% comes from Kent Reliance and Tesco Bank. Nationwide pays 2.05% for two years.
This article was written for our sister website Money Observer
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.