21 Nov 2024

Specialist UK Mortgages...

ISA season kicks off early

Traditionally ISA season starts to gather pace in mid February, but this year things appear to have started early.

Since the start of the year, new and/or revised products have been launched by, amongst others Alliance & Leicester, Birmingham Midshires, Chelsea BS, Leeds BS, The Post Office and Santander.

Providers still appear to want to tie savers’ money in, resulting in the number of fixed rate ISAs on offer more than doubling in the last year from 39 to 84.

However, providers do appear to be listening to savers’ demands for short term commitments, as 68% of all fixed rate ISAs available are for terms of two years or less.

Cash ISA Selections

Provider	Account	Rate	Introductory Bonus	Notice/Term	Min Investment
Top Variable Rate Cash ISAs
Manchester BS	Premier ISA Issue 4	3.01%	Rate includes a 1.00% bonus for 12 months	60 Days	£1,000
Newcastle BS	Reward Saver ISA	3.00%	Rate includes a 1.00% bonus for 12 months	120 Days	£500
Buckinghamshire BS	Monthly Income 180 Day 12 Cash ISA	2.82%	N/A	180 Days	£100
Top One Year Fixed Cash ISAs
Bank of Cyprus UK	Cash ISA Bond 2nd Issue	3.33%	N/A	1 Year	£1
United Trust Bank	1 Year Fixed Cash ISA (Transfers in only)	3.25%	N/A	1 Year	£500
Cheshire BS	12 Month Fixed Rate ISA	3.00%	N/A	1 Year	£1,000
Source: Moneyfacts.co.uk 25.01.10

Michelle Slade, spokesperson for Moneyfacts.co.uk commented:

“As the new ISA season gets underway, savers will be hoping that this year will be as competitive as ever, bringing with it increasing rates.

“Demand for savers’ money caused rates to rise during most of 2009, but with restrictions on how much can be invested, ISAs rates showed limited benefit.

“For the first time since their launch in 1999, the top variable ISA rate is lower than that on a standard variable savings account.

“However, the tide has turned and ISAs are seeing rates increase, while other savings rates are being cut.

“ISA savers will be further cheered as the increased cash ISA allowance of £5,100 is opened up to all savers from the start of the new tax year and not just the over 50s.

Moneyfacts Group
Moneyfacts is the UK’s leading independent provider of personal financial information and our data is used and trusted throughout the financial industry.

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