Isa savers face bleak season as deals dry up

Savers on the hunt for lucrative “Isa season” rates or attractive deals will be left disappointed this year, with only one notable offer launched so far.

The deal, from Nationwide, could mean savers win up to £20,000 in a prize draw by putting £100 into a new or existing Isa.

Anna Bowes, of Savings Champion, the financial analysts, said Nationwide was cutting a lone figure in offering incentives to consumers to open or use their savings accounts.

“The cash Isa season is virtually non-existent this year,” she said. “A competition or a prize draw seems the only way to pique savers’ interest.”

The chance of an individual Nationwide deal winning the draw is around one in 7,600, based on the number of its Isas topped up by at least £100 during the same period in 2019.

Andrew Hagger, of Moneycomms, another analyst, said the chance of winning was slim, but that will still feel like “it’s worth a punt”.

Mr Hagger added: “The cash Isa market is stagnant. It’s a sad state of affairs that it’s got to the stage where some consumers need incentives to kick them into action.”

Ms Bowes added: “Savings rates have been on a relentless downward trend for some time now. The rates on even the best savings accounts are so low that potential savers are not attracted by them.”

Nationwide will pay 10 savers £20,000 – the maximum that can be saved in an Isa each year – plus 50 other prizes. This includes 10 prizes of £10,000 and 40 of £5,000. The lottery closes on April 30.

Nationwide said the exact odds will depend on the final number of users

‘It’s a sad state of affairs that some consumers need incentives to kick them into action’

and that the lottery was “true to its mutual roots”.

The draw will take place on May 21, and prizes will be paid by cheque or directly to Nationwide accounts.

The lender also recently launched a deal called Start to Save. This pays 1pc interest a year and gives the chance to win £100 every month.

Savers have to increase their savings by £50 to £100 every month for three months to be eligible for the draw.