Skipton Building Society has launched two Isas designed to make use of the higher Isa allowance introduced in this year’s Budget.
Savers can open a regular saver Isa, which pays 2.25 per cent, or a bonus cash ISA, offering 1.50 per cent, straightaway and save up to £5,940, the current tax-free allowance. They can then top up their Isas to £15,000 from 1 July when the new tax-free threshold is raised. The regular saver Isa lasts one year and requires monthly deposits of up to £1,250, while the bonus cash Isa offers a 0.25 per cent bonus in its first year and can be opened either online or in a branch.
Key features
Minimum investment of £1 for both products |
Regular saver rate lasts one year and then reverts to the mutual’s easy access Isa saver rate |
Bonus Isa rate drops to 1.25 per cent after one year |
Bonus Isa is easy access, penalty-free withdrawals are allowed |
Regular saver does not permit transfers in from other Isas |
Adviser verdict
John Finnigan, director of Edinburgh-based Innovate Financial Services, said: “These products are fairly competitive in a market that does not offer a great deal of tempting choices. We always recommend that easy-access accounts for housing emergency funds should be as tax-efficient as possible.”