One personal and business bank account provider has put one over on its rivals, launching a new three-year ISA savings product that grabs the top spot on the best buy tables, experts say.
Taxpayer-owned bank Halifax increased the yield on its three-year tax-free saver to 4.25 per cent, leaving its rival NatWest’s 4.2 per cent interest rate offering eating dust. Halifax’s four-year offering has also been overhauled, with the bank sweetening the deal with a new 4.35 per cent rate of return.
The bank was already at the top of the five-year ISA tables with a 4.5 per cent interest rate, currently the best after-tax rate available from any savings provider in the UK, and leaves Halifax dominating fully half of the six fixed-rate ISA terms. The remaining three are split between Cheshire Building Society, who has the top spot in the 18 month ISA tables with its 4.05 per cent offering, and Spain-based Santander with its two year fixed 4 per cent deal and its 3.5 per cent one year fix.
Halifax stands to draw the attention of long-time ISA savers, as the bank permits transfers in of ISA savings pots from years past. An additional benefit is that balances transferred in are guaranteed by Halifax to begin accruing interest from the day the bank receives the transfer application and thus eliminating the loss of any interest due to delays in switching providers – a process that is offered only by Cheshire BS parent mutual Nationwide out of the major financial service providers in the country.