Working in the financial industry for over 30 years, Rachel Thrussell is the leading independent expert on UK savings products. Her views are constantly in demand from both the industry and the press.
Now the pandemic is hopefully ending soon, do you think there may be a slightly more competitive market for ISAs for the new tax year or do you expect no movement in rate as the economy could take years to recover?
As you know, the interest rates for cash ISAs have been declining and are now at very low levels. Sadly, we don’t have a crystal ball about what will happen to ISA rates in the future, but it is not likely that rates will increase rapidly any time soon.
New banks help to stimulate better rates for savers, but most focus on launching savings accounts that are not in an ISA wrapper, due to operational reasons. As these organisations mature some do choose to offer ISAs, Paragon Bank is a recent example. We will need to wait and see if more challenger banks decide to offer ISAs.
Finally, please do not take any of the information above as financial advice or a recommendation.
|1 Year Fixed Rate Bond||0.44%|
|2 Year Fixed Rate Bond||0.50%|
|3 Year Fixed Rate Bond||0.64%|
|4 Year Fixed Rate Bond||0.74%|
|5 Year Fixed Rate Bond||0.83%|
|02 March 2021|
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