One personal and business bank account provider has recently jumped to the top of the heap with its new fixed one-year ISA offering.
Aldermore Bank’s new 3.31 per cent interest rate 12-month fix has claimed the top of the best buy tables. The new rate is enough to bump Clydesdale & Yorkshire’s 3.25 per cent one-year fix out of the top spot.
The account, which has a minimum balance of £1,000, will either accept transfers from an existing ISA or be topped off with the 2011-2012 tax year’s £5,340 allowance. In addition to the yearly interest payment of 3.31 per cent, savers can also access their interest monthly at 3.26 per cent, something that could resonate very strongly with savers such as pensioners who rely on ISA savings income to pay bills.
Transferring funds or withdrawing early will cost the saver 120 days’ worth of accrued interest.
The next best one-year fix is offered by Bank of Cyprus at a rate of 3.3 per cent. However Bank of Cyprus’ deposits are not covered by the Financial Services Compensation Scheme, which is the UK savings safety net.
A relatively new financial services provider, Aldermore Bank was launched in 2009. Since its inception it has gained a reputation of having decent savings rates on offer regularly in an effort to win savers away from High Street banking institutions.
Industry experts agree that choosing a 12-month term for an ISA is a good choice when picking a place to put aside your hard-earned cash. However they caution against limiting your choices to accounts with fixed rates.
Experts point out that savers can turn to AA Savings for a 3.35 per cent return on their instant access ISA. Likewise banking giants Barclays and Santander offer rates of 3.25 per cent and 3.3 per cent respectively.