MoneySupermarket trumps ISAs

Posted 2008-04-6

With the weekend ushering in a new era for Individual Savings Accounts (ISAs), MoneySupermarket.com has said there has never been a better time to open one of the accounts.

The tax-free allowance on such accounts has now risen by up to 20 per cent - allowing annual Cash ISA savings of up to £3,600 each year.

And with the top-paying ISA coming in at 6.5 per cent AER, Kevin Mountford, head of savings at price comparison website, said the traditional March rush for ISAs may be followed up by an April stampede as latecomers catch on to how much more they could be earning.

"Up to 80 per cent of ISAs are opened in the six weeks before the end of the tax year, but there are lucrative opportunities right now for early birds," he said. "Rates on cash ISAs are, on average, one per cent higher than this time last year and with market conditions being so strong for savers, there may have never been a better time to invest."

Mr Mountford singled out the two top-earning ISAs as being the Barclays Tax Haven ISA (6.5 per cent AER) and the Scarborough BS Notice Mini Cash ISA (6.3 per cent AER).

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