With the end of the financial year, many UK investors will be looking at new financial products.
With some savings accounts offering lower interest rates than others, it’s important to understand the different types of ISAs which are available.
But don’t worry, there are certainly standout options for Brits considering the best tax-free place for their money.
Here is a selection of six new ISA products for 2017/2018, now available in the UK:
- Returns: 8.00 per cent fixed over 3 years
- Minimum investment: £5,000
The LC&F ISA has a very high rate of interest, but you’ll need £5,000 minimum to be able to invest. The interest is paid quarterly, and the initial investment is repaid at the end of the term length.
It is worth understanding that even though it is an ISA, with all of the tax-free benefits that come with it, this account is not protected by the FSCS.
Read more about the other fixed-rate innovative finance ISAs on the market.
- Returns: 2.00% AER tax-free
- Minimum investment: £1-£1000
This product is designed specifically for first-time buyers, with a bonus paid on the purchase of a property in the UK.
Backed by the government, this Halifax ISA offers 2% AER and a 25% bonus on a final balance, for funds deposited up to £3,000, subject to eligibility.
Although there are unlimited withdrawals on the account, savers are warned that there is no bonus on withdrawn funds and that it will mean they have to save for longer in order to get their maximum bonus.
Only £200 can be paid in per calendar month too, which must be paid by standing order by the 25th of each month.
- Returns: 2.15% tax-free AER fixed
- Min Investment: £1
This account can be opened for just £1 and has a competitive rate of 2.00%. It is also possible to top up the amount in the ISA each year.
With this account, Brits over the age of 16 can save all the way up to their £20,000 tax-free allowance and all the interest they earn, they will be able to keep, with none going to tax.
This account also offers the ability to withdraw funds if needed before the term length has ended, and this only incurs an interest penalty.
- Returns: 3.54% tax-free AER fixed
- Min Investment: £100
Landbay now offers a fixed-rate IFISA which invests your funds into multiple buy-to-let mortgages. The account pays monthly interest, which can either be withdrawn or reinvested.
There are no fees, but the account is not protected by the FSCS. However, Landbay do operate a reserve fund should their be any defaults.
- Returns: 1.45% tax-free AER fixed
- Min Investment: £100
This account provides a fixed tax-free interest rate of 1.45% (fixed until 30 April 2020). Interest, which is calculated daily, is paid once a year on 30th April (starting from 30th April 2019).
The account allows accrued interest to be transferred to another building society or bank account. But savers should be warned that each withdrawal is subject to 150 days’ interest loss.
- Returns: 2.00% tax-free AER fixed
- Min Investment: £500
Skipton offer competitive rates on their fixed-rate cash ISAs, but there are no withdrawals allowed and there is an interest penalty if you close the account early.
Any funds withdrawn and then replaced will not count towards the annual ISA allowance, providing good flexibility, and the product is accompanied by the full FSCS deposit protection up to £85,000.
Compare Our Top 10 UK Savings Rates
Non-ISA Option: NS&I 3 Year Savings Bond
As promised, the Government released a market topping 3 year growth bond in the 2017 budget.
This has currently good rates of 2.2pc, but only allows up to £3000 per person and requires a minimum of £100 to invest and to be kept as a balance.
Money can be withdrawn but it will incur a 90 day interest penalty for doing so. However, even this rate can be beaten.Last updated: March 20th, 2018