Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
Stock Market Deviation from Overall Outlook for 2020 - 22nd Feb 20
The Shanghai Composite and Coronavirus: A Revealing Perspective - 22nd Feb 20
Baltic Dry, Copper, Oil, Tech and China Continue Call for Stock Market Crash Soon - 22nd Feb 20
Gold Warning – This is Not a Buying Opportunity - 22nd Feb 20
Is The Technology Sector FANG Stocks Setting Up For A Market Crash? - 22nd Feb 20
Coronavirus China Infection Statistics Analysis, Probability Forecasts 1/2 Million Infected - 21st Feb 20
Is Crude Oil Firmly on the Upswing Now? - 20th Feb 20
What Can Stop the Stocks Bull – Or At Least, Make It Pause? - 20th Feb 20
Trump and Economic News That Drive Gold, Not Just Coronavirus - 20th Feb 20
Coronavirus COVID19 UK Infection Prevention, Boosting Immune Systems, Birmingham, Sheffield - 20th Feb 20
Silver’s Valuable Insights Into the Upcoming PMs Rally - 20th Feb 20
Coronavirus Coming Storm Act Now to Protect Yourselves and Family to Survive COVID-19 Pandemic - 19th Feb 20
Future Silver Prices Will Shock People, and They’ll Kick Themselves for Not Buying Under $20… - 19th Feb 20
What Alexis Kennedy Learned from Launching Cultist Simulator - 19th Feb 20
Stock Market Potential Short-term top - 18th Feb 20
Coronavirus Fourth Turning - No One Gets Out Of Here Alive! - 18th Feb 20
The Stocks Hit Worst From the Coronavirus - 18th Feb 20
Tips on Pest Control: How to Prevent Pests and Rodents - 18th Feb 20
Buying a Custom Built Gaming PC From Overclockers.co.uk - 1. Delivery and Unboxing - 17th Feb 20
BAIDU (BIDU) Illustrates Why You Should NOT Invest in Chinese Stocks - 17th Feb 20
Financial Markets News Report: February 17, 2020 - February 21, 2020 - 17th Feb 20
NVIDIA (NVDA) GPU King For AI Mega-trend Tech Stocks Investing 2020 - 17th Feb 20
Stock Market Bubble - No One Gets Out Of Here Alive! - 17th Feb 20
British Pound GBP Trend Forecast 2020 - 16th Feb 20
SAMSUNG AI Mega-trend Tech Stocks Investing 2020 - 16th Feb 20
Ignore the Polls, the Markets Have Already Told You Who Wins in 2020 - 16th Feb 20
UK Coronavirus COVID-19 Pandemic WARNING! Sheffield, Manchester, Birmingham Outbreaks Probable - 16th Feb 20
iShares Nasdaq Biotechnology ETF IBB AI Mega-trend Tech Stocks Investing 2020 - 15th Feb 20
Gold Stocks Still Stalled - 15th Feb 20
Is The Technology Stocks Sector Setting Up For A Crash? - 15th Feb 20
UK Calm Before Corona Virus Storm - Infections Forecast into End March 2020 - 15th Feb 20
The Growing Weaponization of Space - 14th Feb 20
Will the 2020s Be Good or Bad for the Gold Market? - 14th Feb 20
Predictive Modeling Suggests Gold Price Will Break Above $1650 Within 15~30 Days - 14th Feb 20
UK Coronavirus COVID-19 Infections and Deaths Trend Forecast 2020 - 14th Feb 20
Coronavirus, Powell and Gold - 14th Feb 20
How the Corona Virus is Affecting Global Stock Markets - 14th Feb 20
British Pound GBP Trend and Elliott Wave Analysis - 13th Feb 20
Owning and Driving a Land Rover Discovery Sport in 2020 - 2 YEAR Review - 13th Feb 20
Shipping Rates Plunge, Commodities and Stocks May Follow - 13th Feb 20
Powell says Fed will aggressively use QE to fight next recession - 13th Feb 20
PALLADIUM - THIS Is What a Run on the Bank for Precious Metals Looks Like… - 13th Feb 20
Bitcoin: "Is it too late to get in?" Get Answers Now - 13th Feb 20
China Coronavirus Infections Soar by 1/3rd to 60,000, Deaths Jump to 1,367 - 13th Feb 20
Crude Oil Price Action – Like a Coiled Spring Already? - 13th Feb 20

Market Oracle FREE Newsletter

Nadeem Walayat Financial Markets Analysiis and Trend Forecasts

Individual Savings Accounts (ISAs) becoming more complex - Not such an easy ISA

Personal_Finance / Savings Accounts Mar 21, 2007 - 12:26 AM GMT

By: Sarah_Jones

Personal_Finance

Rachel Thrussell, Head of savings at moneyfacts.co.uk – the money search engine, comments:

“As the end of another tax year approaches, banks and building societies have been stepping up their efforts in an attempt to capture their slice of the huge ISA market.

“When the Mini Cash ISA was first introduced in 1999 as an easy tax efficient way to save, the majority of ISAs were straightforward, either instant access or notice and occasionally with an introductory bonus.


“But an overriding theme has developed this year with providers becoming more creative with their product design, attaching more complex terms and conditions in order to offer a higher return.

Packaged ISAs
“The packaged ISA is a new concept, offering what appears to be by far the most attractive interest rates, but requiring an additional account to be opened. In the case of the Abbey this is a Guaranteed Growth plan, while Alliance & Leicester asks that a Premier Current Account be opened. Smile, also offers a preferential ISA interest rate to current account holders.

“The rates on these packaged ISAs are also inflated by limited rate incentives. In the case of Abbey, after 1.5.08 this account reverts to the Direct ISA rate, currently paying between 5.5% and 5.75%, which also includes a 0.5% bonus to 1.5.08, while the Alliance & Leicester rate includes a 3.10% bonus until 30.4.08.

“If you are happy to open the required current account or take more risk with an equity based investment, then these current rates are unrivalled in the short term.

“With such large reductions in the interest after the first 12 months, it will certainly be worth checking out the competitiveness of the deal come next April. Also make sure your other accounts don’t suffer in the process – the Alliance & Leicester Premier Current Account for example offers between 0.10% and 1.49% credit interest.

Bonuses

“Many of today’s best ISA rates include a bonus, so it is important not only to check out the size of the bonus but also its length. Take the Barclays ISA for example; although this ISA includes a bonus of 1%, at least it is available for a full 12 months, making the AER currently an unrivalled 6.5%.

“As many ISAs are freely portable, your relationship with one provider does not have to be lifelong. So why not take advantage of the best rate for this year, and then decide on a new provider next April?

Fixed rate

“This year in particular, ISAs rates weaken the long-held belief that, on average, notice accounts traditionally yield higher returns. As the table below illustrates, similar rates are available for fixed and variable rate ISAs, which shows that ISA providers are being cautious of future fluctuations in money market rates.

“ISAs are a great way to save, are tax free and can provide great returns. Make sure you search for the best account, taking into account any restriction, bonuses and notice terms. ISAs rates will start to bloom over the next few weeks, with many new ISAs sprouting up too. But if past years are anything to go by, they won’t stay around for long and the offers may be withdrawn at short notice or alternatively rates will drift lower over time.”

 

Posted by Sarah Jones - For Rachel Thrussell of MoneyFacts.co.uk


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules