Banks and Building Societies are continuing to engage in a dirty battle to appear at the top of the best ISA league tables, although savers should be warned.
Banks are keen to play on consumers loyalty, but offering high rates for an introductory period, but then lowering the rate substantially safe in the knowledge that most savers won’t bother to move their money every year.
The top five savings accounts are split by just 0.35% and with savers having until April 5th to put money into an ISA for this year, the battle is stepping up.
The five at the top of the list are all there because of an introductory bonus, and savers will find their interest rate plummeting after the initial 12 month period is up.
In much the same way as car insurance, customers can play this to their advantage and shop around each year for a better deal, but with UK consumers showing a shocking loyalty to their banks and building societies, the banks can offer these deals knowing you are unlikely to leave.
The worst account is Santander’s Flexible ISA, advertised all over the TV at the moment as the best account because it will increase its rate if the bank of England base rate increases.
Whilst this is true for the first year, and the 3.3% rate looks attractive, the account will revert to a 0.5% ISA after a year, a whopping 2.8% less.
Savers who are happy to move their money each year will benefit from these deals, but if you know you are the sort of person to save your money and forget about it, look for a different deal.