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Cash in on fixed rate cash ISAs

Cash in on fixed rate cash ISAs

Category: Savings

Updated: 25/03/2010
First Published: 25/03/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Savers are intending to cash in on the interest rates being offered by fixed rate cash ISAs before the end of the tax year.

Almost two thirds (65%) of people planning to take out a cash ISA told Principality BS that they favoured a fixed rate product, offering a higher return of interest.

Just over a third (35%) preferred the option to have instant access to their money, but would therefore typically have to make the sacrifice of receiving a lower rate of return.

In addition, over half (53%) of those questioned thought that now was a good time to save, an increase of more than 10% on the previous survey conducted three months earlier.

However, disappointingly, only 12% were aware that from 6 April the new maximum amount that can be invested in a cash ISA will increase for everyone aged 16 and over to £5,100, a rise of £1,500.

"Saving in a cash ISA with its ongoing tax-free benefits makes a lot of sense and the increased annual limit offers committed savers even more incentive to squirrel away their cash," said James Wright, marketing director of Principality BS.

"Increased saving is not only good for savers, it also gets the financial system moving again, helping house buyers get the mortgages they need.

"For savers who haven't opened an ISA this tax-year or still haven't reached this year's annual limit of £3,600, the deadline for doing so is fast approaching."

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