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| It's the new Isa year – so where should you put your cash? | It's the new Isa year – so where should you put your cash? |
| (9 months later) | |
| Savers looking for the best rates in the new tax year for either an Isa or a standard savings account will benefit from "the battle of the building societies". | Savers looking for the best rates in the new tax year for either an Isa or a standard savings account will benefit from "the battle of the building societies". |
| Anyone looking to transfer previous Isa money into a new instant access account will find the best rate at Leeds building society. Savers can get 2.55% for deposits or transfers of as little as £1. This narrowly pips Santander, which is paying 2.5% on its instant access Isa. It allows transfers in, but only of £2,500 or more. | Anyone looking to transfer previous Isa money into a new instant access account will find the best rate at Leeds building society. Savers can get 2.55% for deposits or transfers of as little as £1. This narrowly pips Santander, which is paying 2.5% on its instant access Isa. It allows transfers in, but only of £2,500 or more. |
| For those who do not want to transfer money, the Coventry building society is the best bet. It has just increased the rate on its new Poppy Isa to 2.6%. The new rate includes a 0.60% bonus for the first 12 months, while an annual donation equal to 0.10% of the Poppy Isa average balances will be paid by the building society to the Royal British Legion. The Coventry guarantees that the interest rate will be at least 2.6% until 5 April 2014. | For those who do not want to transfer money, the Coventry building society is the best bet. It has just increased the rate on its new Poppy Isa to 2.6%. The new rate includes a 0.60% bonus for the first 12 months, while an annual donation equal to 0.10% of the Poppy Isa average balances will be paid by the building society to the Royal British Legion. The Coventry guarantees that the interest rate will be at least 2.6% until 5 April 2014. |
| "We really like the Poppy Isa, as not only are you getting a best buy but it also gives to charity," says Anna Bowes, director of savingschampion.co.uk. "A raft of new savings rates in the last week is turning the market into a battle of the building societies." | "We really like the Poppy Isa, as not only are you getting a best buy but it also gives to charity," says Anna Bowes, director of savingschampion.co.uk. "A raft of new savings rates in the last week is turning the market into a battle of the building societies." |
| The Nationwide is rewarding its FlexAccount, FlexDirect and FlexPlus current account customers with its best instant access cash Isa, paying 2.5%, which includes a fixed introductory bonus of 1% until 30 November 2014. The Cheshire building society, which is part of the Nationwide Group, has meanwhile launched a cash Isa paying 2.3%, which includes an introductory fixed bonus of 1.80% until 31 October 2014. The rate applies to balances of £1,000 or more. | The Nationwide is rewarding its FlexAccount, FlexDirect and FlexPlus current account customers with its best instant access cash Isa, paying 2.5%, which includes a fixed introductory bonus of 1% until 30 November 2014. The Cheshire building society, which is part of the Nationwide Group, has meanwhile launched a cash Isa paying 2.3%, which includes an introductory fixed bonus of 1.80% until 31 October 2014. The rate applies to balances of £1,000 or more. |
| For fixed rate Isas, the Leeds again tops the table, paying 2.45% interest for a year. This account does not accept transfers in, but does allow access to 25% of your funds without notice or penalty. The best short-term fixed rate that allows transfers comes from Aldermore, paying 2.25% on a £1,000 minimum investment. | For fixed rate Isas, the Leeds again tops the table, paying 2.45% interest for a year. This account does not accept transfers in, but does allow access to 25% of your funds without notice or penalty. The best short-term fixed rate that allows transfers comes from Aldermore, paying 2.25% on a £1,000 minimum investment. |
| For a longer term fix, Santander is offering 2.8% for two years*. You can close the account in this time but you would sacrifice the equivalent of 120 days' interest. Santander 123 current account customers can get a rate of 3%. | For a longer term fix, Santander is offering 2.8% for two years*. You can close the account in this time but you would sacrifice the equivalent of 120 days' interest. Santander 123 current account customers can get a rate of 3%. |
| The only other way to get 3% is to become a First Direct customer and invest £40,000 or more in an Isa. | The only other way to get 3% is to become a First Direct customer and invest £40,000 or more in an Isa. |
| Building societies have also increased their rates on standard savings accounts in the last week, according to Bowes. West Bromwich now pays 2.05%, while Skipton and Coventry pay 2%. | Building societies have also increased their rates on standard savings accounts in the last week, according to Bowes. West Bromwich now pays 2.05%, while Skipton and Coventry pay 2%. |
| Isa savers tempted to wait to see if better rates come around are warned that such a tactic could see them lose out. "If you have got money, put it in now or, as we've seen in previous tax years, you could procrastinate for months and then end up waiting for a better rate that never arrives," says Bowes. "Even though it's a bit of a pain you can always transfer again later." | Isa savers tempted to wait to see if better rates come around are warned that such a tactic could see them lose out. "If you have got money, put it in now or, as we've seen in previous tax years, you could procrastinate for months and then end up waiting for a better rate that never arrives," says Bowes. "Even though it's a bit of a pain you can always transfer again later." |
| The Coventry building society calculates that if someone put in the full Isa allowance of £5,760 into its Poppy Isa now, the amount of interest earned for 12 months would be £149.76. If you delayed opening the Isa for 3 months you would lose out on £37.44. | The Coventry building society calculates that if someone put in the full Isa allowance of £5,760 into its Poppy Isa now, the amount of interest earned for 12 months would be £149.76. If you delayed opening the Isa for 3 months you would lose out on £37.44. |
| * This was correct at the time of publishing, but Santander has since pulled this product. | * This was correct at the time of publishing, but Santander has since pulled this product. |