InvestmentsApr 16 2014

Launchpad: Savings

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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.”