Financial analysts have urged savers to assess the options available to them, after it was discovered that some cash ISAs are paying as little as 0.05 per cent. The tax free savings accounts were introduced in April 1999, and have since been thought of as one of the most lucrative types of savings account, though the findings from Money Mail has suggested otherwise.
Whereas ISAs offered an average interest rate of 6.32 per cent in April 1999, that figure has now fallen to a meagre 0.41 per cent - 0.09 per cent below the base rate. The result is that tax relief is no longer significant, and is now worth 82p per year on each £1,000 saved for a basic rate taxpayer, compared to £13 a year in 1999.
Many banks are paying more interest on their savings accounts, even when tax is accounted for. Savers at Halifax earn 0.5 per cent interest before tax, compared with 0.1 per cent on a cash ISA . Cheltenham and Gloucester are the worst offenders, offering just 0.05 per cent on their cash ISA, compared to 1.9 per cent before tax on the high street account.
Banks Offering Meagre ISA Deals
Financial Services > e-banking > Banking news
Banks Offering Meagre ISA Deals
Wed, 27 Jan 2010
Recommended links
Tax Free ISAsReclaim Bank Charges
Leading Current Accounts
Banking FAQs
Compare broadband deals and save money
Central Bank Blamed as Inflation Cancels Out Savings Interest
Government Backed Savings Bank Announces Interest Delay
Internet users set online banking record
FSA Authorises Bank as Savings and Mortgage Provider
Bank of England Interest
Banks Upset Over National Savings and Investments Offering Attractive Deals
Further Details of Nationalised Bank Split Revealed
Bank Savings Survey Reveals Stable Savings Levels
Post Office Banking Plans Unveiled
Bank Returns Cheques Following Savings Applications
Banks win supreme court case on overdrafts
Merged Bank Launches Table Topping Bond
Nationwide CEO Critical of Banking Regulation
Savers Advised to Look Beyond Banks for Best Rates
Bank Warns Parents to Save
Bank Savings Accounts Still Yielding Tiny Returns
Chancellor Reveals Biggest Ever Bank Bail Out
Customers to benefit from new banking regulations
Bank of England Expected to Expand QE Scheme
Spanish Banking Group Reveals Profit Increase from UK Banks
Banks Warned to Build Up Capital Reserves
Building Societies Rival Bank Savings Offers
Banks Agree to New Pay Laws
Lloyds Banking Group Seeking Help from Other Banks
OFT Calls for Banks to Clarify Current Account Charges
| Banking news |
|---|
| Banks failing on online fraud says MPs report - Tue, 05 Apr 2011 |
| Lloyds TSB is to change the interest rates on its Vantage current account - Thu, 31 Mar 2011 |
| Contactless debit cards from Lloyds TSB - Tue, 29 Mar 2011 |
| More News |
Simplyhealth Dental Plan
Affordable cover from only £7.50 per month. Join now and get first month FREE
Amex Cash Back
Credit Card
Credit Card
Get 5% cash back on purchases with Amex
Income Protection Insurance
Get an instant quote with the award winning company