A new cash ISA from Nationwide has recently made news for offering a top interest rate of 2.9 per cent.
The e-ISA is available via online banking and includes a bonus rate of 1.15 per cent available until July 31 of next year. This makes the new offering tops on the easy access best buy tables; however the new deal is only open to Nationwide customers with either a savings or current account with the building society.
New savers can access a 2.7 per cent Champion ISA through the building society. Included in that rate is a bonus 1.21 percentage points that expires at the end of June 2012. While savers are required to give notice 60 days in advance in the event of taking money out of the account, it is permitted to make one free easy access withdrawal every 12 months. Many industry experts state that savers can easily transfer their cash to a savings product with a more attractive rate by availing themselves of this option.
In related news, Yorkshire Building Society has announced the launch of a 3.5 per cent two-year fixed rate cash ISA saver as well. With only two months remaining for savers to use their £5,100 cash allowance this tax year or lose out altogether, personal and business bank account providers have been campaigning hard to attract savers.
As cash ISAs boast tax-free interest, savers can maximise their investment returns. However due to their tax-free nature certain limitations exist – such as being unable to carry over any unused ISA allowance into the forthcoming tax year.
The new tax year begins on the 6th of April. Along with it comes a new cash ISA limit of £5,340.