As of today (June 24), Teachers Building Society has confirmed the launch of two new cash ISA accounts. Both are fixed rate accounts, with one being for the two years and the other one, with the hope many join the building society as new savers. The account with the strongest rate is the new year fixed cash ISA at 2.15 percent, while the other has a 1.60 percent interest rate.
Recently, banks have received criticism for not passing down continuous base rate hikes to their savings products for customers.
Today’s announcement suggests that banks, including Teachers Building Society, are looking to rectify this.
As part of the building society’s new two year 2.15 percent AER fixed rate cash ISA, the account will have minimum balance £1,000, maximum balance £250,000.
Being a fixed rate ISA, it will begin maturing for savers on August 14 2024, just over three years from now.
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Those looking to access this account can put forward an application online via the TBS website.
It should be noted that there are no withdrawals allowed and any early closure which is permitted will be subject to 180 days’ loss of interest.
When it comes to the new one year 1.60 percent AER fixed rate cash ISA, the minimum balance is also £1,000 with a maximum balance £250,000
Compared to the two year account, this particular fixed rate ISA matures on July 19, 2023.
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Similarly, applications can be made online through the Teaching Building Society’s website and now withdrawals are allowed.
David Leek, the head of sales and marketing at Teachers Building Society, shared why savers can feel “proud” being customers of the financial institutions after this rate hike.
Mr Leek explained: “It’s not surprising that after a difficult couple of years for savers our fixed rate ISAs have proved to be very popular in recent weeks.
“We’re pleased to now be able to offer a choice between a two year or one year fixed rate ISA.
“As another academic year draws to a close, those who save with us can feel proud that they are directly supporting teachers by trusting us with their money.
“Because the collective deposits of savers support us in funding mortgage lending to teachers with smaller deposits, by opening an ISA with us savers are helping us with getting even more teachers onto the property ladder, something they should feel really good about.”
Rachel Springall, a finance expert from Moneyfacts.co.uk, discussed why this is “positive news” for savers in light of low interest rates over the past couple of years.
She said: “Savings rates rising is positive news for consumers who are looking to maximise the return on their hard-earned cash.
“Just a year ago, savers were experiencing a period of record-low interest rates, which in itself could have been extremely deflating for those who prefer to use a safe cash account over stocks and shares.
“Any improvement to cash ISAs will likely be welcomed by savers, as typically fixed ISAs do not pay rates beyond those offered on fixed bonds.
“However, it’s wise to consider the longer term benefits of an ISA wrapper whilst also being conscious of utilising any Personal Savings Allowance.”
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