Best ISA rates 'are seeing improvements'
Best ISA rates 'are seeing improvements'
Best ISA rates 'are seeing improvements'
Banks are to make improvements to their best ISA rates in the coming weeks, according to a new report.
UK consumers on the lookout for the best ISA rates on the market are finding that a growing number of attractive offers are emerging.
A new report from the Financial Times has observed a "seasonal rush" among banks and building societies to offer ISA deals with better rates ahead of the end of the current tax year.
According to the newspaper, the best rates available on cash ISAs currently stand at around three per cent for instant access accounts, with longer-term fixed-rate deals providing rates of four per cent or above.
However, the coming weeks will see a number of even better offers become available to those looking to compare accounts.
The news is likely to further increase the appeal of ISAs to those who are finding that interest rates on standard savings accounts remain low, with the Bank of England confirming earlier this month that the base rate is being held at 0.5 per cent, the level it has been at since March 2009.
According to the Financial Times report, experts suggest that placing the maximum 10,200 allowance into a cash ISA should be considered a "no brainer" decision.
This is because interest on these savings will be tax-free, guaranteeing higher returns than if the money had been kept in a standard savings account - a fact underlined by the strong long-term performance of ISAs, despite the economic difficulties seen in recent years.
Moreover, because there are no special tie-ins or requirements attached to the tax savings afforded by ISAs, it means "balances are just as accessible as equivalent taxed accounts".
In addition, the publication pointed out that those looking to switch ISAs will benefit from new industry arrangements that guarantee transfers will be completed within 15 working days, with interest paid by the new provider within two days of funds being paid in.
According to industry analysts, this will make the ISA transfer process "slicker".
Barnsley Building Society yesterday (March 3rd 2011) launched a new ISA package, which has a fixed annual equivalent rate of 3.5 per cent for a two-year period and can be taken out by customers on the lender's website.
Lynne Pepper, Yorkshire Savings product manager, remarked that the package represents an "excellent investment" for people who want to maximise their savings "over a two-year period".
"We are now in ISA season with customers looking for the best product allowing them to make tax savings," she added.
Ms Pepper went on to say that savers should make sure they make full use of their ISA saving allowance by making their "savings more tax-efficient".
In related news, research published yesterday (March 3rd 2011) by Scottish Widows showed that 36 per cent of all Britons are not currently putting any money aside for the future.
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