Newly launched Isas top savings tables
Banks and building societies are launching new easy-access cash Isas paying a tax-free 1.5%. Skipton Building Society's new Bonus Isa Saver pays 1.5% including a 0.5% bonus for 12 months.
The rate puts it among the leaders, alongside Post Office Premier Isa at 1.5% including a 0.65 percentage point bonus for 18 months and National Savings & Investments Direct Isa also at 1.5%.
The Skipton and Post Office accounts are only available in branches and through the post, while National Savings is an online or telephone-based account.
Santander, Nationwide and HSBC also have easy-access accounts at 1.5% available for some of their current account holders.
The top rates on fixed-rate deals include Virgin Money and Shawbrook Bank, both at 1.6% for one year, or Yorkshire and Clydesdale banks at 2.1% for two years.
On taxable easy-access accounts you can earn 1.25% before tax (1% after) from Skipton Limited Edition e-saver, State Bank of India Online Instant Access or Kent Reliance Easy Access 8, as well as from newcomer Charter Savings Bank.
Coventry Building Society pays a higher 1.4% (1.12%), but you have to run the account through the post and you are limited to 12 withdrawals a year.
On fixed-rate bonds rates Charter Savings Bank pays a top 1.8% (1.44%) for one year, while the top two-year rate comes from Harrods Bank at 2.25% (1.8%).
National Savings & Investments pays a higher 2.8% (2.24%) for one year and a top 4% (3.2%) for three years. But this bonds are only open to those aged 65 and over and the maximum you can put into each bond is £10,000. They are on sale until 15 May.
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.
An account opened with a clearing bank (few building societies offer current accounts) that provides the ability to draw cash (usually via a debit card) or cheques from the account. Some pay fairly minimal rates of interest if the account is in credit. Most current accounts insist your monthly income (salary or pension) is paid directly in each month and they offer a number of optional services – such as overdrafts and charge cards – which are negotiable but will incur fees.
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.