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Combat inflation with a tax-free account

Combat inflation with a tax-free account

Category: ISAs

Updated: 18/01/2013
First Published: 17/01/2013

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 It is now over 6 months old so the content may be out of date.

The Consumer Prices Index (CPI) remained at 2.70% during December, spelling yet more frustration for savers hit hard by the effects of tax and inflation.

Research by has found that out of 884 standard savings accounts, just two deals pay rates that beat and match CPI.

Both of these accounts are variable cash ISAs and pay competitive tax-free rates of return to savers who are willing to give their provider advance notice before accessing their money.

Two accounts, all of which are variable cash ISAs, pay rates that either beat or match CPI.

Before comparing the two inflation beating ISAs below, remember the maximum Cash ISA allowance investment for the tax year 6th April 2012 - 5th April 2013 stands at £5,640 and once you have subscribed to a cash ISA you will not be able to subscribe to another in the same tax year.

Coventry BS
Coventry Building Society 60 Day Notice ISA (3)
2.80% AER/Gross
  • Rate includes 0.60% bonus for 12 months
  • Minimum investment £1
  • Early access permitted, subject to 60 days' loss of interest penalty
  • Transfers in are not accepted
  • Apply online, by post, by telephone, or in branch, then return your application along with proof of identity (if required)
  • Pay in funds via electronic payment from your bank or building society, regular standing order, from another Coventry account, cash in branch, or cheque

Penny says...
"This attractive savings account pays a market-leading tax-free rate of 2.80% to savers with deposits of £1 and over.

"Funds can be accessed, subject to 60 days' notice, although a 60 days' loss of interest penalty will apply if advance notice is not given.

"Savers must bear in mind that the 0.60% bonus will expire after twelve months, after which the rate will revert to 2.20%."

Earl Shilton
Earl Shilton Building Society 90 Day Cash ISA
2.70% AER/Gross
  • Minimum investment £10
  • Early access is permitted, subject to 90 days' loss of interest penalty
  • Transfers in accepted from existing customers only
  • Apply by downloading an application form in PDF format online, completing it manually and posting with proof of identity to Earl Shilton Building Society

Penny says...
"Sitting proudly in bronze position is the 90 Day Cash ISA paying an annual rate of 2.70%.

"Advance notice of 90 days' is required prior to accessing funds so is best suited to savers who do not need immediate access to their money.

"This account can be operated in branch or by post."

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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.