CHESTER, England, March 27, 2013 /PRNewswire/ --
- Time is running out to take advantage of tax free benefits
- MoneySupermarket has seen a rush on applications for tax free savings
With the end of 2012/13 tax year just over a week away, MoneySupermarket.com urges savers who have not taken advantage of this year's ISA allowance to move quickly and look for the latest deals on offer, or miss out for good, especially if they have existing ISA funds languishing on low rates.
Britain's number one comparison site has seen a 21 per cent increase in the number of people looking for ISAs through its site compared to March 2012. However, unlike in previous years, more people are opting to fix their ISAs rather than take out a variable rate deal*, largely due to the average rates on fixed rate ISAs being higher than those on easy access cash ISA products. The average rates on the top 5 fixed rate ISAs is currently 2.99 per cent, 0.58 percentage points higher than the average rates on the top 5 easy access ISAs, however, you will have to lock your money away for a longer period to take advantage.
Kevin Mountford, head of banking at MoneySupermarket, said: "It's the final countdown until the end of the current tax year on 5th April, and consumers could still make the most of the tax efficient options for their savings. With a maximum cash ISA allowance of £5,640 available, you'd be throwing money away to the tax man if you didn't take advantage. A number of providers have announced new rates in the last few weeks, and finally we're seeing more competitive rates emerge. Due to falling savings rates, we are now beginning to see more people opting for fixed rate ISAs over easy access cash ISAs. While the rates on these products are more generous, savers need to be prepared to lock the money away as they cannot access it during the term of the bond. For those who cannot afford to lock money away, you can still get rates five times that of base rate on easy access Cash ISAs.
"Although you may not have enough spare cash available to invest in the current tax year, if you have any ISA funds from previous years, it is worth checking the rate you are currently being paid and be prepared to switch those funds to an account that allows transfers of existing ISA funds in. However, if you do this, don't just withdraw the money from your existing ISA as it will lose its tax free status. Instead you need to follow the ISA transfer process which your new provider will help you with, but with time running out until the end of the tax year it is important to make sure this can be done before the deadline.
"Although this tax year isn't quite over, it is also worth planning ahead to the next tax year. Those who invest the full cash allowance at the start of the new tax year will benefit from the tax benefits for the entire year, ensuring you get the best returns on your savings."
For anyone looking for more information on ISAs visit the MoneySupermarket ISA event.
Notes to editors
* Number of people taking out fixed rate ISAs in March 2013 is 49 per cent compared to 35 per cent in March 2012.
Cash ISAs Based on GBP5,640 Account Provider (Terms & Minimum AER Bonus Bonus Period Conditions Apply) Deposit First Trust Bank Cash ISA GBP50 2.50% N/A N/A Cheshire BS ISA Saver (Issue 1) GBP1,000 2.50% 2.00% 31/07/2014 Santander Direct ISA Saver (Issue 1) GBP2,500 2.50% 2.00% 12 months Tesco Bank Instant Access Cash ISA GBP1 2.30% 0.30% 12 months Stafford Railway BS Cash ISA GBP1 2.25% N/A N/A HSBC Premier Variable Rate Cash ISA GBP1 2.25% 1.98% 12 months Fixed ISAs Account Provider (Terms & Minimum AER Notice Access Conditions Apply) Deposit 3.1% Fixed paid Phone Halifax ISA Saver Fixed GBP500 anniversary 5 year bond Branch 3.05% Fixed paid Phone Halifax ISA Saver Fixed GBP500 anniversary 4 year bond Branch 3% Fixed paid Phone Halifax ISA Saver Fixed GBP500 anniversary 3 year bond Branch 3% 123 Exclusive Major Fixed paid Phone Santander ISA GBP1 yearly 01.05.15 Branch 2.8% Santander Major ISA 2 Year Fixed paid Phone Fixed Rate GBP1 yearly 01.05.15 Branch 2.75% Online Principality BS 5 Year Fixed Rate Fixed paid Phone Cash ISA Issue 107 GBP1 anniversary 5 year bond Branch Transfer In ISAs Account Provider (Terms & Minimum Conditions Apply) Deposit AER Bonus Bonus Period Cheshire BS ISA Saver (Issue 1) GBP1,000 2.50% 2.00% 31/07/2014 Santander Direct ISA Saver (Issue 1) GBP2,500 2.50% 2.00% 12 months Leeds BS 2 Year Base Rate Tracker ISA Issue 12 GBP1 2.25% N/A 30.04.15 HSBC Premier Variable Rate Cash ISA GBP1 2.25% 1.98% 12 months Harpenden BS Simply ISA GBP1 2.25% N/A N/A Earl Shilton BS Instant Access Cash ISA GBP10 2.20% N/A N/A Sourced by http://www.moneysupermarket.com 21.03.2013
Notes to Editors:
MoneySupermarket.com compares (at 27th Feb 2013)
- 137 car insurance brands and 98 home insurance brands
- 15 broadband providers and 20 energy providers
- 31 unsecured loan and 5 secured loan providers
- 62 mortgage lenders and 28 credit card providers
- 62 savings providers and 37 current account providers.
- Over 540,000 mobile phone deals
We help our customers to save money on all of their household bills by providing a free, easy to use online service so they can compare a wide range of products in one place and find the product most suited to their needs. Our size means we are able to offer our customers exclusive, market-leading deals, including some they can't even get direct from providers.
By having considerable volumes of informed customers actively looking for products and ready to purchase, we offer our providers an efficient and cost effective customer acquisition solution across all of our channels. This enables our providers to target their marketing spend in an effective and completely measurable way.
Our revenue comes predominantly from fees paid to us by product providers when a customer clicks through to their website and actually applies for or purchases a product. It is a success based marketing fee.
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