LaunchPad: Savings

The mutual has launched one-, two- and three-year ISAs to compliment its five-year version, which pays 3 per cent. The new rates on offer range between 1.6 and 2.23 per cent.

Savers also have a choice between two ranges of fixed-rate bonds, available at different rates depending on whether they are accessed in-branch or online. That is because the bonds provided in-branch, except the five-year version, pay higher rates on higher balances. For instance, the rate on funds worth between £500 and £24,999 is 1.4 per cent, going up to 1.5 per cent on savings worth £25,000 or more.

Fixed rate cash Isas pay 1.6, 1.85 and 2.25 per cent over one, two and three years respectively
Fixed rate e-bonds pay 1.5, 1.7, 2.05 and 3 per cent over one, two, three and five years. The one-year fixed-rate bond in-branch pays 1.4 per cent on balances below £25,000. The two-year equivalent pays 1.9 per cent for balances above £25,000. The three-year version pays 2 per cent below that amount and 2.15 per cent above that amount
Savers can withdraw or transfer their whole balance subject to loss of 180 days’ interest (or 240 days on the five year ISA)
Partial withdrawals and transfers out are not allowed on the ISAs, while no withdrawals are allowed on the bonds
The minimum opening balance for both ISAs and bonds is £500, the maximum balance allowed on a bond is £1m

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Adviser comment:

Scott Gallacher, director of Leicester-based Rowley Turton, said: “While decent, none of these deals will set the world alight. I am fielding calls from clients who are at the end of their tether, looking for better returns on cash, and I’m steering them towards the Santander 123 current account, because it offers a better net rate with additional bonuses, such as cashback if you hold a decent balance.”