Cash ISA Limit Cut Deferred: What’s Next for Savers?
The chancellor’s recent decision to leave the tax-free cash ISA limit untouched has come as a relief to many savers. However, it’s essential to note that this doesn’t mean the idea of cutting the limit is entirely off the table. According to Anna Bowes, a savings expert from The Private Office, the chancellor might still consider changes to ISAs in the future.
Best Cash ISA Rates Available
Despite the uncertainty surrounding the cash ISA limit, savers can still take advantage of the top rates on offer. The top fixed-term cash ISA rates have held up relatively well, with only marginal reductions in the top rates across all but the five-year term. The top one-year rate is now 4.3%, down from 4.32%, while the top five-year rate remains at 4.24%. When choosing a term, it’s crucial to consider what you think will happen to interest rates over the next few years.
Easy Access Cash ISAs: A Flexible Option
For those who want the flexibility to withdraw their cash, an easy access cash ISA might be a better option. The top five accounts have remained the same for most of July, with Plum offering the top rate of 4.98%. It’s essential to check all the terms and conditions to ensure you choose the best account to meet your needs.
Other Popular Savings Products
If a cash ISA isn’t the right option, there are other popular savings products to consider. The easy access market has seen minimal changes, with the West Brom Building Society launching a new restricted access account paying 4.55%. This has pushed the Principality Building Society’s Online Triple Access Issue 7 account from the top of the table.
Fixed-Rate Bonds: A Long-Term Option
Fixed-rate bonds are another option for savers. Although the next Bank of England base rate move is expected to be downwards, top fixed rates are holding fast overall. The top one-year fixed rate is now 4.6%, offered by financial app provider Prosper via its partner bank, Al Rayan. The three-year table has seen the biggest increases, with the top rate now 4.46% AER.
Conclusion
In conclusion, while the cash ISA limit cut has been deferred for now, it’s essential for savers to stay informed and make the most of the top rates on offer. Whether you choose a fixed-term cash ISA, an easy access cash ISA, or a fixed-rate bond, it’s crucial to consider your individual needs and the current market conditions. By doing so, you can make the most of your savings and achieve your financial goals.
