ISAs

As the Bank of England's Monetary Policy Committee (MPC) looks set to reduce Bank Base Rate to a historic low on Thursday (8th January), many investors, who have already suffered from the 3% drop in Base Rate since October last year, will be looking for opportunities to maximise the return on their savings.

Almost half of British consumers will make it a New Year's resolution to save more money for the future, according to research commissioned by the ABI. And over 50% say they are more likely to make that resolution given the current economic climate.

The biggest ISA savers in the UK are in Epsom and Ewell with an average balance of £9,343, according to the Halifax ISA Savings Report.

Following last week's 1.00% Bank of England Base Rate change, M&S Money has reduced its variable Cash ISA rate by 0.50%. With effect from today, 8th December 2008, the rate is 2.50% AER/tax free.

Newcastle Building Society announces the launch of its new ISA+ (Issue 2), with a variable rate of up to 4.50%, including a bonus of 0.50% paid until 1st of July 2009.

Leeds Building Society has launched a 5-Year Fixed Rate Escalator ISA paying up to 5.00%. Furthermore, the account allows access at any time, without notice or penalty, to up to 25% of the initial amount invested.

Following last week's 1.50% Bank of England Base Rate change, the M&S variable Cash ISA rate has changed from 4.50% to 3.00% AER/tax-free.

The interest rate paid on NS&I's Direct ISA will decrease from 4.80% per annum to 3.30% following yesterday's decrease in the Bank of England base rate.

Scottish Widows Bank has further improved their new E-Cash ISA savings account. From 3 November an increased bonus of 1.50% will be available on the E-Cash ISA for 12 months, giving an initial AER of 6.00% tax free, variable.

Alliance Trust Savings, a leading UK financial services provider, has published the results of its quarterly ‘Alliance Trust ISA Ranking1' for the second quarter of 2008/9 tax year. The Alliance Trust ISA Ranking lists the most popular investment trusts that private investors have chosen for their ISA through Alliance Trust Savings.

As Brits across the country strive to meet the new 31 October deadline for paper ‘Self Assessment' tax returns, Alliance & Leicester reminds savers to make the most of their tax-free ISA allowance all year round and not leave it to the last minute, at the traditional ISA rush during March and April.

The value of ISA savings in the UK stood at £207.8 billion at the end of the tax year 2007/08, a seven-fold increase on 1999/00 (£28.6 billion), according to a report by the Halifax.

Following last week's 0.50% Bank of England Base Rate change, the M&S variable Cash ISA rate has changed from 5.00% to 4.50% AER/tax-free.

The interest rate paid on NS&I's Direct ISA will decrease from 5.30% per annum to 4.80% following the decrease in the Bank of England base rate by 0.50%.

Newcastle Building Society has announced the launch of a new best buy Secure ISA with a rate of 6.20%. This account is being launched to compliment the Newcastle's market leading ISA+ (Plus) account.

first direct has launched a market leading fixed rate cash e-ISA at 5.85% AER (6.125% tax free). The cash e-ISA is available until 6 November and the rate fixed until 15 June 2009.

Family Investments announced an exclusive partnership with Post Office Financial Services to provide its customers with both cash and stocks and shares ISAs which are now available via its 13,000 strong branch network and via the Post Office website.

The Post Office has extended its savings range by launching a cash ISA paying a leading rate of 6.25 per cent.

Commenting on ISA providers aiming to speed up the cash transfer and opening process to a maximum of two weeks, Kevin Mountford, head of savings at moneysupermarket.com, said: "It's great news that the industry has finally recognised there is a problem with ISAs.

Virgin Money has welcomed new guidelines by the British Banking Association (BBA) to improve the process of ISA transfers.

In response to the announcement from the BBA, BSA and TISA on Cash ISA transfer best practice, Halifax can confirm that it fully supports the new guidelines and in addition is re-launching its ISA Rate Promise.

The British Bankers' Association, the Building Societies Association and the Tax Incentivised Savings Association have published new guidelines to speed up the transfer of cash ISAs between providers and to improve the efficiency of the process.

Britons are being forced to use hard earned savings to meet the rising cost of living, according to new research from Abbey Savings. The study found that on average ISA savers have withdrawn £579 each (£6 billion in total), which equates to 26 per cent of the average ISA subscription for 2007/2008.

Leeds Building Society's Inflation Buster ISA, which is guaranteed to beat inflation by paying RPI plus 2.5%, would pay a tax free return of 7.1% if RPI over the term is equal to 4.6%, which is the latest figure released by the Office for National Statistics for June 2008.

Britannia has launched a new one-year fixed rate ISA paying 6.30% Tax Free /AER fixed to 30th September 2009.