Savings update: new £20,000 Isa allowance - where to find the best savings rates

4 April 2017

Savers looking to use their £20,000 cash Isa allowance for next tax year, which starts on Thursday are being offered pitiful rates of interest in these tax-free accounts.

Coventry Building Society offers the best easy-access deal at 1.05%. Its Easy Access Isa 5 is available online, through its branches and by post or phone and accepts transfers from other providers. It is also ‘flexible’ which means you can take money out and put it back without busting your cash Isa allowance – as long as you replace it in the same tax year.

On fixed-rate cash Isas, the top one year deal comes from Yorkshire BS at 1.1% fixed until the 30th April next year. You can open it in the branch or by post.

Principality Building Society pays 1.4% for 18 months, available online, through its branches or by post.

On taxable easy-access accounts Yorkshire Building Society pays a top 1.15% on its branch-based Single Access Saver. But you are restricted to making withdrawals on just one day of your choosing a year.

French-owned RCI Bank pays 1.1% on its internet-based Freedom Account and Nottingham Building Society 1.05% on its e-Saver Instant 7. There are no withdrawal restrictions on either account. 

On fixed-rate one-year bonds Paragon Bank pays a leading 1.51% while Family Building Society pays 1.52% for 18 months.

For two years the best rate is 1.8% on a new bond from Principality Building Society.

This story was originally written for our sister magazine, Money Observer.

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