Interest rates slashed on top-paying ISA accounts

Posted on 05. Jun, 2009 in General News

According to price comparison website Moneynet, interest rates have been slashed on some of the top-paying individual savings accounts (ISAs). Some banks and building societies have now drawn in all the deposits they had wanted just two months ago.

In some cases the ISA accounts have been withdrawn altogether from potential new customers.

New ISA policies are marketed heavily at the start of each financial year. Savers are encouraged to use the tax-free accounts, in which they can deposit up to £3,600 in a cash each year, with up to £3,600 more in a stock and shares ISA. Alternatively savers can put up all the £7,200 annual ISA allowance in a stocks and shares ISA.

According to HM Revenue & Customs, there were nearly 15 million ISA accounts in 2007-08, holding £220 billion between them.

Source: BBC 04-06-2009

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