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The battle begins for your ISA savings

Monday, 25 January 2010 Writes Hazel Cottrell hazel.cottrell@consumerchoices.co.uk

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Savings providers have begun competing for ISA deposits, but to get the best deals you have to lock-up your cash.

Many ISA providers have introduced new and revised cash ISA products this month, including Alliance & Leicester, The Post Office and Santander.

As the new ISA season gets underway, savers will be hoping that this year will be as competitive as ever.

However, many banks and building societies are reserving the best rates for those who are prepared to invest their cash for a set period of time.

The number of fixed-rate ISAs on offer has more than doubled in the last year, from 39 to 84, according to financial information company Moneyfacts.co.uk.

Michelle Slade, spokeswoman for Moneyfacts.co.uk, said: “As the new ISA season gets underway, savers will be hoping that this year will be as competitive as ever, bringing with it increasing rates.”

For the first time since their launch in 1999, the top variable ISA rate is currently lower than that on a standard variable savings account. However, Slade said the tide has turned and ISAs are now seeing rate increases.

She added: “ISA savers will be further cheered as the increased cash ISA allowance of £5,100 is opened up to all savers from the start of the new tax year.”

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