Find the best savings deals following Halifax cuts
Halifax is the latest bank to cut rates on fixed-rate bonds for new savers. It now pays just 1.4% before tax (1.12% after) on its one-year fixed-rate bond. The rate is less than you can earn in an easy-access account.
The best one-year fixed-rate bond on the high street comes from Post Office, where the deposit taker is Bank of Ireland at 1.8% (1.44%). Over the internet you can earn a slightly higher 1.85% (1.48%) with FirstSave. The top two-year deal comes from State Bank of India and Shawbrook Bank, both at 2.25% (1.8%).
This Friday (12 December) the Treasury will announce the rate it will pay on its one and three-year Pensioner Bond for those age 65 or over. The bonds will go on sale in January with what have been promised as 'market leading rates'.
Top Cash Isa rates
On easy-access deals the top rate comes from AA Savings, Post Office and Tesco Bank. All three include a bonus for the first year after which the rate drops.
On tax-free cash Isas National Savings & Investments pays 1.5% with no short-term bonus, but you cannot transfer your existing cash Isas into the account. Best for transfers is Barclays Bank at 1.49% on a minimum £30,000 with no bonus.
Post Office pays a higher 1.55% on its Premier Isa which includes a bonus of 0.8 percentage point bonus for 18 months.
On fixed-rate cash Isas Post Office pays a leading 1.7% for one year while AA Savings pays 2% 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.