Yorkshire and Clydesdale tops savings tables
With less than five weeks to go before the end of the tax year, new cash Isa deals are still very thin on the ground. Best deals include the new two-year fixed-rate deal from both Yorkshire Bank and Clydesdale Bank at a tax-free 2.1%. For one year the top deal is 1.6% from Virgin Money.
On easy-access cash Isas, Post Office Premier Isa pays 1.5% - but you are limited to two withdrawals a year. And the rate includes a bonus for the first 18 months you are in the account, after which the rate drops to 0.65%.
National Savings & Investments Direct Isa also pays 1.5% with no bonus - but you cannot transfer your existing cash Isas into this account.
The best deal for transfers with no bonus is Barclays Bank Instant Cash Isa 1 at 1.49% on £30,000 or more, while GE Capital Direct pays 1.4% on its Cash Isa Issue 4 on £500 or more.
On taxable easy-access accounts, Skipton Building Society Limited Edition e-Saver, State Bank of India Online Instant Access and Kent Reliance Easy Access Issue 8 all pay 1.25% before tax (1% after) with no bonus.
AA Savings, where the deposit taker is Halifax, also pays 1.25% (1%), but this includes a bonus for the first 12 months, after which the rate drops to 0.5% (0.4%).
On fixed-rate bonds the top one-year rate comes from National Savings and Investments at 2.8% (2.24%), but this deal is only open to those age 65 or over and the maximum investment is £10,000. The next best rate comes from Harrods Bank at 1.75% (1.4%), followed by Post Office at 1.7% (1.36%).
You can tie your money up for 18 months with Harrods Bank at 1.95% (1.56%), and Harrods Bank also pays the top rate for two years at 2.25% (1.8%), followed by Shawbrook Bank at 2% (1.6%).
For three years National Savings leads the field with 4% (3.2%) for those aged 65 or over. The next best deals, open to all, come from Harrods Bank and Close Brothers, both at 2.5% (2%).
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.