Cash ISA rates sink down – one BS bucks trend

While most financial service providers are slashing interest rates on savings products such as ISAs as a result of the Bank of England’s Funding for Lending scheme, one building society has decided to buck the trend by offering a new top-paying easy access account.
West Bromwich Building Society has dazzled savers with their newest 3.18 per cent easy access cash ISA by not only topping the savings tables but also opening its arms to one and all. The new account allows transfers in – a true rarity for a high-paying easy access tax-free savers – and while other banks and building societies have withdrawn deals paying as high as 3.5 per cent a few months back, West Brom has picked up the fallen standard.

Two larger players, ING Direct and Santander, both recently pulled their high-paying easy access ISAs, replacing them with lower-paying 3 per cent issues instead. That left the top spot with Barclays’ 3.05 per cent Loyalty Reward ISA, but allowed no transfers in and required a customer to have a current account with the bank.

No longer, thanks to West Brom’s newest offering, which is sure to attract attention from savers looking to transfer in cash from other, older ISA savings products but held off because of a lack of options.  The results will most likely be that the new easy access saver will be wildly popular – at least until it becomes over-subscribed and the building society will have to withdraw it.

The best advice is you’re probably not going to find another excellent deal in awhile, what with most banks using the cheap capital they can access through Funding for Lending as an excuse to cut their savings rates.  With inflation rumoured to be dropping further, a 3.18 per cent rate of return, tax free, offers rather good news.

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