Isa rates rise as deadline draws nearer

CASH Isa rates continue to edge up slowly as we approach the end of the tax year on April 5.

Savers can put £20,000 into a cash Isa savings account this tax year and pay no tax on any of the interest they earn.

But if you miss the deadline, then you will lose this year’s allowance altogether.

In the next tax year — which starts on April 6 — you will have another £20,000 cash Isa allowance, giving you the chance to put £40,000 outside the reach of the taxman in the space of a few months.

Virgin Money has increased its one-year fixed-rate cash Isa to 1.5 pc. The best deal for two years is a higher 1.67 pc from online Paragon and Charter Savings banks, followed by Virgin Money at 1.66 pc.

On easy- access cash Isas, Nationwide Loyalty Single Access Isa pays 1.4 pc. But it is only open to those who have been a member for 12 months, and you can only make one withdrawal a year.

The building society’s Single Access Isa, open to all, pays 1.3 pc.

For a cash Isa without withdrawal restrictions, Virgin Money’s Easy Access Cash Isa issue 23 pays 1.21 pc, Nottingham BS Easy Access Isa 1.2 pc and Shawbrook Bank’s Easy Access Cash Isa 2 pays 1.25 pc.