Baby Ace: Nationwide BS launches two best buy fixed-rate cash Isas

Friday, March 14, 2014

Nationwide BS launches two best buy fixed-rate cash Isas

By

Lee Boyce

The moribund cash Isa season showed further sign of spluttering into some kind of life today with Nationwide Building Society launching two new fixed-rate deals which nudge to the top of best buy tables.

Savers might be forgiven for restraining their excitement over the rates though: its two-year cash Isa comes in at 2.05 per cent rate and its three-year fix pays 2.25 per cent.

The two-year fix is equalled by Halifax

which has one for the same length of time at 2.05 per cent. This

requires a slightly higher £500 to open, but can be applied for online.

New Isa: Two fixed-rate offers have been unveiled by Britain

New Isa: Two fixed-rate offers have been unveiled by Britain’s biggest building society today

Britain’s biggest building society also promises to pay interest from the moment applications are received.

Both accounts can be opened with £1 and accept transfers in when opened. They have to be opened in branch while savers can choose to have the interest paid monthly or annually.

Behind that, there are a clutch of deals at two per cent for those looking to fix their money for 24 months.

In the three year stakes, Coventry Building Society has a higher 2.75 per cent rate. However, it doesn’t accept transfers in and it has to be opened with exactly £5,760 – this year’s Isa limit.

Halifax and Lloyds Bank both have three-year rates at 2.25 per cent that also accept transfers.

The Halifax deals requires £500 to open while Lloyds Bank needs a far higher £20,000.

Easy-access wise, Santander has the highest rate available for transfers that is open to everyone at 1.6 per cent.

Just behind this, Halifax has a 1.55 per cent rate.

There has been a glut of new cash Isa deals in the last two weeks and it appears banking and building societies are willing to pip each other to top best buy tables.

The new tax year starts on 6 April 2014 when the new Isa limit goes up to £5,940.

Last week, This is Money editor Simon Lambert asked whether it was worth saving into an Isa with rates so low. He says it is.

It is savers only chance to save away from the taxman. Although rates are low now, it is important to roll over allowances in the future for hopefully – fingers crossed – Isa rates become better.