Big banks join cash Isa rate battle

BARCLAYS and Lloyds have unveiled their easy-access cash Isas deals for this season.

Barclays Isa Saver Issue 2 pays 2.75 pc tax-free including a fixed-rate bonus of 1 percentage point for the first year you are in the account.

Its Loyalty Reward Isa, exclusively for its current account holders or those with at least £500 of savings with the bank, pays a higher 3.05 pc, boosted by a similar bonus.

With Lloyds TSB Cash Isa, you earn 2.65 pc including a 1.65 percentage point bonus payable for 18 months.

Most bonuses run for a shorter 12month period. Unlike the Barclays account, you can transfer your existing cash Isas into this one.

Earlier this month Marks & Spencer Money unveiled its Advantage Isa at 3 pc tax free on savings of £100, while Virgin launched its Easy Access Cash Isa at 2.85 pc. Neither rate is boosted by a bonus — and both will let your transfer your existing cash Isas into the account.

On one-year fixed-rate cash Isas Metro Bank has launched an internet-based account at 3.25 pc. Marks & Spencer and Leeds BS also pay this competitive rate while Aldermore Bank has raised its rate to 3.35 pc.

Yorkshire and Clydesdale banks have launched a two-year fixed cash Isa at 3.6 pc to April 2015. Nottingham BS pays a slightly higher 3.65 pc while Lloyds Bank’s new deal out this week pays 3.7 pc on a minimum £10,000. On smaller balances the rate is 3.4 pc.

C&G, part of Lloyds TSB, is paying 3.9 pc tax free fixed to April 2015.