The new tax year starts on April 6th which means consumers have a little more than three weeks to take advantage of the tax-free £15,000 ISA allowance before the regulation change. Despite rates being relatively short at the moment it is still worth using this allowance. Moreover, under the current regulations one can split this £15,000 between shares and cash ISA.
In comparison to saving accounts that are taxed, because the ISA allowance is tax-free the customer can increase their return by up to 25%. Furthermore, if the customer is a higher-rate taxpayer they can increase it by as much as 66%.
There are various accounts available through banks and building societies that offer up to 1.6% via easy-access accounts which is significantly more than the standard deals being given at 1.02%.
When picking the savings account it is necessary to be weary of the changing rates and various stipulations that come when signing on. If you wish to open in a high-street store then do it sooner rather than later to avoid any additional problems that come with going in branch.
A number of different types of account are listed below with specific qualifications to them. Both Santander and Halifax are not offering good rates at present which defies tradition at this time of the year. The Easy ISA account at Santander is giving 0.5% at the moment which is poor. The Halifax ISA saver isnít much better either at 1% and this comes with the condition that after a year-long bonus it falls to 0.5%.
The recently available Triple Access Saver from Yorkshire Building Society is going at 1.35% but offers only a few withdrawals- good deals are also available through Yorkshire BS subsidiaries such as the Chelsea and Barnsley building societies.
Similar deals are offered at Barclays with their Instant Cash ISA at 1.39% on the condition that you input the total £15,000 whilst Virgin Define Access account gives 1.35% but you can only withdraw three times per annum.
Furthermore, at HSBC there is a Loyalty Cash ISA for the current account customers that is offering within a range of 1.4% and 1.6%. A similar loyalty scheme at Nationwide called Flexclusive ISA is paying out at 1.5%.
There are a number of good deals available if the customer is content with transferring their savings after a period of a year and a half. The Premier ISA account with the Post Office is offered at 1.5% on the condition that only two withdrawals are made per annum. Further to this, the Bonus ISA at Skipton gives out 1.5% as well and that is with an additional 0.5% bonus each year.
Furthermore, attractive deals are on the market for those consumers living within the delineated branch area. For example, the Monmouthshire Building Society gives 1.5% whilst Coventry, Dudley and West Bromwich Building Societies all offer 1.4% upon various conditions.
For those looking to use the internet or telephone systems exclusively there is a 1.5% available with the National Savings & Investment establishment. As for the fixed rate accounts on the market, Virgin Money is the best at 1.6%.
Moving on to the two-year accounts, the Yorkshire & Clydesdale institution is offering a 2.1% rate whilst the Post Office gives a less attractive 1.95%.