Cash Nisa rates continue to rise
Rates on easy-access cash Isas continue to edge up. Halifax has raised the rate on its Online Isa Saver rate to a tax-free 1.5%, up from 1.3% and its Isa Saver Variable rate to 1.45%, up from 1.25%. The increase only applies to new savers and includes a bonus for the first year.
The top easy-access rate is 1.6% from Cheshire and Derbyshire building societies' Easy Isa issue 5, but you cannot transfer existing cash Isas into these accounts.
The top deals for transfers include BM Savings at 1.55%, Virgin Money and Nationwide Instant Isa Saver along with the Halifax internet-based account, all at 1.5%.
Neither the Virgin nor the Nationwide rate is boosted by an initial bonus. National Savings & Investments Direct Isa also pays 1.5% but does not accept transfers.
On fixed-rate cash Isas, the top rate comes from Virgin Money at 1.76% for one year or 2.1% for two years.
On taxable accounts you can earn 1.35% before tax (1.08% after) with Tesco Internet Saver but the rate is boosted by a 0.6 (0.48) percentage point bonus for a year. Both Virgin Money and Sainsbury's Bank pay 1.3% (1.04%) with no bonus.
On fixed rate deals FirstSave pays 1.88% (1.5%) for one year or 2.3% (1.84%) 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.