The Funding for Lending Scheme has resulted in prominent names in the savings sphere disappearing from the This is Money savings tables as they seem to have focused more on offering competitive mortgage rates than high savings rates.
Usually, ISA season (the time between March and May) results in banks and building societies competing with one another in order to secure the deposits of the public. Three big names are now back in contention with new savings deals.
Nationwide's tax free account offers 1.4% for existing customers or 1.3% for new customers.
Halifax offers a 2.25% interest rate on it's 5 year ISA product and Coventry has now released a one year fix that pays 1.4%. While none of these rates are very impressive in themselves, they signal that large lenders may be looking to secure deposits from savers in a way that they have not been in the recent past.
There are rumours that the Bank of England may soon raise the base rate, which will give further impetus to increases in the savings rates that will be offered.
The ISA market has proven less popular for providers due to the higher level of complexity inherent in the systems needed in order to offer the ISA product.
This has led to the larger providers taking it easy, as they do not really have to compete. However, the large sums of cash accumulated by tax-free savers could start to attract more providers, improving competition and by extension, raising rates.
Westminster Wealth Management can assist in helping you to navigate your financial future, and expert advice can be priceless in the long term. Contact us today.
The value of investments and income from them may go down as well as up and you may not get back the original amount invested.
Information is based on our current understanding of taxation legislation and regulations which is subject to change.