5-yr ISA maintains its competitive edge | Product News - Moneyfacts

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5-yr ISA maintains its competitive edge

5-yr ISA maintains its competitive edge

Category: Savings
Date: 16/10/2014

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 It is now over 6 months old so the content may be out of date.

Julian Hodge Bank has reviewed its five-year fixed rate offerings and made slight reductions. However, the five-year ISA has warded off its competition and held onto a place among the top 10 in its sector.

The basics…

5 Year Fixed ISA now pays a highly competitive rate of 2.50% per annum, while the five-year Capital Millennium Bond also pays 2.50% yearly (2.47% monthly).

The finer details…

Both accounts can be opened in branch or by post, and then managed by post.

The ISA requires an initial investment of £5,000 and welcomes transfers in of other cash and stocks & shares ISAs (minimum £5,000), however, further additions are not permitted. Early access is also possible, although this will result in closure of the account and a penalty. Transfers out will also incur a penalty charge.

The bond needs a minimum investment of £1,000 and accepts further additions while the issue remains open. However, unlike the ISA, there is no possibility of accessing funds before the bond matures, so investors must be comfortable with locking their funds away for the full term.

Why we like them…

The five-year ISA still offers a very enticing rate, which has helped it to retain its position in the top 10 of the Moneyfacts charts. This is likely to appeal to investors, particularly as there is the option to tap into funds early, although this will result in the closure of the account and a penalty.

Four Moneyfacts Stars have been awarded.

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 Any products featured may be withdrawn by their provider or changed at any time.

 

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 Any products featured may be withdrawn by their provider or changed at any time.

 
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