Sainsbury's Finance has launched a new easy access ISA with an attractive 2.6 per cent interest rate . Though the rate only last for 12 months, at which point it drops to 0.5 per cent, it is the best product of its type on the market for many savers, bettered only by the Cash eISA from First Direct, though this is only available to consumers with a First Direct current account .
Interest on the Sainsbury's ISA is, however, only paid annually, which may deter some savers. A deposit of at least £500 is required to open the account, and savers must ensure their balance does not fall below this threshold to avoid the interest rate being lowered to 0.5 per cent.
Banks have offered miserly interest rates on ISAs and savings accounts since the onset of the economic downturn, so signs of increasing competition should be treated as good news by savers. The 2.5 per cent Intelligent Finance ISA is another leading ISA, offering a rate of 2.5 per cent, while savers only need £1 to open an account.
New ISAs Increase Competition Between Banks
Financial Services > e-banking > Banking news
New ISAs Increase Competition Between Banks
Wed, 11 Aug 2010
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