2007 Moneyfacts.co.uk mini cash ISA survey shows you need to act quickly to get your hands on the best ISA deals.
Rachel Thrussell, Head of Savings at Moneyfacts.co.uk – the money search engine, comments on this year’s finding:
“This year’s moneyfacts.co.uk mini cash ISA survey shows the projected value of £3,000 over the tax year 2006 to 2007. Assuming that the full investment of £3,000 was made on 6 April 2006, that no withdrawals were made and all interest was compounded during the tax year, the survey has wielded some very interesting results.
“Alliance & Leicester, this year’s clear winner claims the top spot in the survey with its Direct ISA, returning £3,163.46. A no notice account, the product was launched on 9 January last year with a rate of 5.20%, but this included an introductory offer of a 0.70% bonus, which was swiftly withdrawn on 12 April. Transfers in were accepted, but it clearly demonstrates that investors had to be quick off the mark after the new tax year began if they wanted to take advantage of the product.
“National Counties BS and National Savings & Investments’ ISAs, in second and third place respectively, are both no notice accounts that provide an attractive return. Although both do not allow transfers in, the fact that the top three ISAs are no notice accounts should weaken the long-held belief that on average notice accounts traditionally yield higher returns
“In 2006, nine out of the top 10 performing ISAs were fixed bonds ranging from one to five years. This year the trend has completely reversed, as in 17th position Bradford and Bingley’s one year ISA is the highest bond ISA.
“However, Alliance & Leicester’s victory is tarnished by the fact it also props up the table with its instant access ISA, returning a meagre £3,109.51. This will without doubt come as good news to Northern Rock, which has held the wooden spoon for the last three years.
“The difference in the top and bottom paying ISA, in this case Alliance & Leicester’s products, was £53.95. Although lower than last year’s difference of £62.10, the difference virtually echoes 2005’s finding of £53.41.
“Whilst £50 or £60 may not sound like a great deal of money, remember this is calculated on a balance of £3,000, whereas many people will have accumulated tax free cash balances of almost ten times this amount. It is important to get a good deal, so check out the latest ISA deals regularly over the next couple of weeks on Moneyfacts.co.uk, the money search engine, to make sure you don’t miss out.
“Mutuals again dominated the top 20 slots this year, taking 16 positions, with Alliance & Leicester, National Savings and Investments and Bradford & Bingley taking the remaining top slots. With the first appearance of any of the ‘Big 4’ from NatWest in a lowly 73rd place.
“Whilst many consumers make full use of their annual tax-free savings limit, this latest moneyfacts.co.uk survey shows that, by shopping around, they can make their return even more worthwhile. Again if this tax year is anything to go by, savers need to act quickly to take advantage of some of the new deals that will come onto the market in the next few weeks, as they may not be around for long!”
NOTES TO EDITORS:
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