With the deadline to use or lose cash ISA allowances taking place today (April 5), Britons will be searching for the more lucrative accounts to get the most out of their savings before the allowance resets. Halifax has launched new rates on its fixed rate savings products and increased the rate on its limited withdrawal, variable rate ISA Saver Bonus Reward.
The new rates came into effect on April 4, and are marginally higher for those who already have a current account.
Andrew Bickers, savings director at Halifax said: “ISAs provide the simplest tax-efficient way of saving. With the tax year end almost upon us, these new higher rates help savers get the most out of their ISA allowances.”
Halifax’s variable cash ISA account is now paying Annual Equivalent Rates of up to 3.2 percent, while its fixed savings accounts and fixed rate ISAs are paying AERs from 3.4 percent up to 4.2 percent.
Variable cash ISA
The ISA Saver Bonus Reward Cash ISA, which is a variable account, is now offering a 3.1 percent AERto those without a current account, while those with a current account have been afforded an AER of 3.2 percent, reflecting an increase of 0.02 percent.
Fixed rate ISAs
Halifax’s One Year Fixed ISA is now offering those without a current account an AER of 4.1 percent, while those who do have one are afforded an AER of 4.15 percent.
Halifax’s Two Year Fixed ISA is now offering an AER of 4.15 percent to those without a current account, while those who have one are afforded an AER of 4.2 percent.
Halfiax’s Five Year Fixed ISA is now offering an AER of 3.4 percent.
Fixed savings accounts
Halifax’s One Year Fixed Savings account is now offering an AER of 4.1 percent to non-current account holders, and 4.15 percent to those with a current account.
Halifax’s Two Year Fixed Savings account is now offering an AER of 4.15 percent to non-current account holders, and 4.2 percent to those with a current account.
Like the fixed cash ISA range, the Five Year Fixed Savings account is offering an AER of 3.4 percent.
This year, only 29 percent knew that ISAs could be an investment, not just a savings tool, while just 14 percent of respondents knew which provider to turn to in order to open different product types (cash, stocks and shares, lifetime and innovative finance).
Almost half (46 percent) of respondents report that they did not put any money into ISAs this tax year.
Uma Rajah, CEO and co-founder of CapitalRise, said: “It is important to do your due diligence, as there are several types of products that all work differently.
“At times like these, it is especially important to check your money is working as hard as it can for you.”
For all the latest Business News Click Here
For the latest news and updates, follow us on Google News.
