Rates on savings accounts continue to rise
Rates on easy-access accounts continue to edge up with the launch of the Post Office Online Saver Issue 12 at 1.4% before tax (1.12% after tax).
The account comes with a short-term bonus with the rate dropping to 0.75% ( 0.6%) after 12 months.
It follows hot on the heels of last week's launch of AA Savings Internet Extra also at 1.4% (1.12%) where the rate drops to 0.5% (0.4%) after a year.
Post Office, where the deposit taker is Bank of Ireland, has also launched Premier Cash Isa 7 at 1.55% tax-free including a 0.8 percentage point bonus for 18 months.
This puts it among the top payers along with BM Savings also at 1.55%. Both accept transfers from other providers.
Fixed-rate cash Isas
Top deals on fixed-rate cash Isas come from Post Office at 1.7% for one year or 2% for two years with AA Savings, Aldermore Bank or Barclays Bank.
On taxable fixed-rate bonds you can earn 1.9% (1.52%) for one year with Investec Bank or Paragon Bank.
For two years top deals come from Investec at 2.35% (1.88%) or 2.25% (1.80%) with State Bank of India (UK).
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.