Short term fixed rate deals rule the ISA roost - Savings - News - Moneyfacts

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Short term fixed rate deals rule the ISA roost

Short term fixed rate deals rule the ISA roost

Category: Savings

Updated: 09/02/2010
First Published: 26/01/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
Lenders appear to be listening to customers, as figures from Moneyfacts.co.uk show a desire for shorter term commitments is being reflected in the ISA marketplace.

Almost seven in ten (68 per cent) fixed rate ISAs currently available are for terms of two years or less. Furthermore, the number of fixed rate ISAs on offer has more than doubled in the last 12 months, from 39 to 84.

Last week, Moneyfacts.co.uk revealed that the ISA season looks to have kicked off early this year, with a number of lenders revising products or launching new deals. Traditionally, the UK's banks and building societies have revealed their hands in mid February.

However, a raft have done so earlier this year, including Alliance & Leicester, Birmingham Midshires, Chelsea BS, Leeds BS, The Post Office and Santander.

"As the new ISA season gets underway, savers will be hoping that this year will be as competitive as ever, bringing with it increasing rates," commented Michelle Slade, spokesperson for Moneyfacts.co.uk.

"Demand for savers' money caused rates to rise during most of 2009, but with restrictions on how much can be invested, ISA rates show limited benefit."

However, that trend is beginning to reverse, with ISA rates benefitting from increasing rates. By contrast, other savings rates are being cut.

"ISA savers will be further cheered as the increased cash allowance of £5,100 is opened up to all savers from the start of the new tax year and not just over 50s," added Ms Slade.

Find the best savings accounts for you - Compare fixed rate cash ISAs

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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