Savers are now enjoying a better return on their savings accounts than they are on tax free ISAs. With banks and building societies keen to attract savers for the predictable and regular income they offer, savers are being offered fixed interest rates as high as 5 per cent before tax - ten times the current base rate . That rate equates to 4 per cent after tax for standard taxpayers, which beats the most attractive tax free cash ISA deal currently being offered - 3.1 per cent from Britannia. It should be noted, however, that high rate taxpayers will see their yield on a 5 per cent savings account reduced to 3 per cent once the taxman has taken his share.
Halifax and Norwich and Peterborough are currently offering the best savings account deals, with an interest rate of 5 per cent fixed before tax. Halifax's deal does, however, require that you make 12 deposits and no withdrawals for 12 months on sums of between £25 and £500 a month. Norwich and Peterborough, meanwhile, require that you move your money or go onto a variable rate deal after one year. Neither bank requires you to have a current account in order to qualify for the deals.
Banks Offering Better Rates on Savings Accounts than ISAs
Financial Services > e-banking > Banking news
Banks Offering Better Rates on Savings Accounts than ISAs
Wed, 09 Sep 2009
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