New £20,000 Isa allowance – where to find the best savings rates

Isa-form-with-pound-coin

Savers have little time left to take advantage of the tax-free cash Isa from NatWest and RBS. The banks will pay a 1 percentage point bonus for a year, worth an extra £200, to those putting the full £20,000 cash Isa allowance for this tax year. But savers need to get their skates on as the money must be in the account before 5 May.

The underlying rate with the easy-access NatWest Cash Isa is just 0.01 per cent, but the bonus boosts it to 1.01 per cent. At RBS, the standard rate is 0.05 per cent, or 1.05 per cent including the bonus.

Once you have earned your bonus you will need to move your money to a better paying account.

Coventry Building Society has cut the rate its Easy Access Isa for new savers. The latest issue, number six, pays 0.9 per cent, down from 1.01 per cent on the previous issue. Ford Money and Sainsbury’s Bank have both raised their rate to 0.9 per cent. Skipton Building Society pays a slightly higher 1 per cent on its Bonus Cash Isa, but this rate includes a 0.35 percentage point bonus for a year.

On fixed-rate cash Isas, the best one-year deal now comes from Ford Money at 1.05 per cent. Paragon Bank pays a top 1.26 per cent for two years.

Rates on taxable easy-access accounts continue to rise, with newcomer Ford Money upping the rate on its Flexible Saver to 1 per cent, to match that offered by Kent Reliance.

RCI Bank still pays the top 1.1 per cent, however.  With this French-owned bank your money is covered up to €100,000 (around £85,000) under the French scheme.  With the others, you are covered up to £85,000 by the UK Financial Services Compensation Scheme.

In the high street, the top rate is 1.15 per cent from Yorkshire Building Society.  But you are restricted to making withdrawals on just one day of your choosing a year from this easy-access account.  National Counties Building Society has raised the rate on its Branch Saver 5 to 0.86 per cent, while Coventry Building Society pays 0.85 per cent. 

On fixed-rate one-year bonds Charter Savings Bank pays a top 1.55 per cent, while for two years OakNorth Bank pays 1.71 per cent, Paragon Bank 1.7 per cent and Charter Savings Bank 1.67 per cent.  
 

 


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