NS&I tops savings table as Skipton closes leading cash Isa
Top rate easy-access cash Isas continue to disappear. Skipton BS has closed its Bonus Isa at 1.5% to new savers. The top deal comes from National Savings & Investments also at 1.5%, but you can't transfer your existing cash Isas into the account.
Barclays Bank pays 1.49% on its Instant Cash Isa Issue 1 and allows transfers in, but you need a minimum of £30,000 to earn this rate.
Nationwide's Instant Isa Saver issue 3 pays 1.4% with a minimum £1 and also allows transfers. There are no withdrawal restrictions on either account, and no bonus to boost the initial rate over the short term.
On fixed-rate cash Isas, you can earn 1.62% from Skipton Building Society or 1.6% from Nationwide Building Society and Shawbrook, Aldermore, Virgin Money or Post Office banks for one year.
Taxable accounts and fixed-rate deals
For two years the top rate comes from Aldermore and Kent Reliance at 1.85% while both Skipton and Nationwide pay 1.8%.
On taxable accounts the top easy-access rate is 1.35% before tax (1.08% after) from Paragon Bank, with no withdrawal restrictions.
If you are happy to limit yourself to three withdrawals a year from your account, then Virgin Money Defined Access account pays a higher 1.41% (1.13%).
On fixed rate deals, Firstsave pays 1.9% (1.52%) and Kent Reliance 1.85% (1.48%). Top two-year deals include 2.21% (1.77%) from Paragon Bank and 2.15% (1.72%) from Firstsave.
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.