Britannia freshens up top-paying savings deal
Britannia has closed its top-paying Select Saver 5 at 1.65% before tax (1.32% after) and replaced it with a newer version paying a lower 1.4% (1.12%). You are limited to four withdrawals a year on the account.
Other deals paying 1.4% (1.12%) include Coventry Building Society Post Save Easy Access and West Bromwich BS Easy Saver Plus, but both limit the number of withdrawals you can make in a year.
Top deals with no withdrawal restrictions include Tesco Internet Saver at 1.35% (1.08%) including a bonus for the first 12 months. With rival Sainsbury's Bank e-Saver, you earn 1.3% (1.04%) and the rate is not boosted by an initial bonus. Virgin Money and GE Capital Direct also pay 1.3% (1.04%) with no restrictions.
Easy-access Cash Isas
On easy-access cash Isas you can earn a tax-free 1.6% with both Cheshire and Derbyshire building societies, offshoots of Nationwide, but you cannot transfer your existing cash Isas into these accounts.
BM Savings, part of Halifax, and Kent Reliance both pay 1.55%, while Nationwide Instant Isa Saver and Virgin Cash E-Isa pay 1.5%. All accept transfers.
On fixed-rate cash Isa the top deals include Kent Reliance at 1.75%, Tesco and Aldermore banks at 1.65% and Halifax at 1.55%. Halifax pays 1.7% for 18 months while at Nationwide you earn 2.05% fixed for two years. Kent Reliance now pays 2.1% fixed for two years.
The best deals on one-year fixed-rate bonds where the interest is taxable include Kent Reliance at 1.9% (1.52%) and FirstSave at 1.88% (1.5%).
If you are willing to tie your money up for two years you can earn 2.2% (1.76%) with Investec, 2.16% (1.73%) with Kent Reliance or 2.15% (1.72%) with GE Capital Direct.
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.