Virgin Money shoots to top of cash Isa charts
Virgin Money has launched a two-year fixed rate cash Isa paying a tax-free 2%. The rate puts it comfortably ahead of the former best deals of 1.8% from both Nationwide and Shawbrook Bank. The Virgin deal is fixed until September 2017 and is available in its branches and online.
Its one-year rate for new savers is also up at a leading 1.71%.
On easy access cash Isas, the best deal comes from National Savings & Investments at 1.5%, but you can't transfer your existing cash Isas into this account.
The best deal for transfers comes from Nationwide Instant Isa Saver Issue 3 at 1.4%. Virgin pays a marginally higher 1.41% but limits you to three withdrawals of capital a year.
On easy access taxable accounts Paragon Bank has launched another version of its Limited Edition Easy Access account at 1.46% before tax (1.17% after tax). It is slightly less than the 1.5% (1.2%) you earn in French bank's RCI Freedom account.
The French deal comes under the European deposit administration scheme, which covers savers for up to €100,000 (around £72,000). Money in the Paragon account is covered by the UK scheme up to £85,000, but this will fall to £75,000 from 1 January.
On fixed rate taxable bonds Charter Savings Bank pays 2.06% (1.65%) for one year or 2.25% (1.8%) for two years, available online. Also among the leaders are United Trust Bank at 2.05% (1.64%) for one year and Secure Trust at 2.33% (1.86%) 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.