We highlight the ‘dirty dozen’ banks and building societies that are hitting savers hard.
Increases in in the Budget may be set to boost your tax-free savings – but, at press time, we found 12 of the biggest cash Isa providers were offering astonishingly low interest rates.
Three of the ‘dirty dozen’ didn’t even match the Bank of England’s base rate of 0.5%, so their customers’ savings were making a pittance in interest.
Barclays offered the lowest rate in April 2009, of just 0.10% (down from 4.26% in April 2008). And Nationwide, Halifax and HSBC all dropped their rates by more than the 4.50% base rate fall.
None of the 12 came close to providing the rates of Which? Best Buy cash Isas.
Martyn Hocking, editor of Which?, said: ‘Too many of the big financial providers are blaming the economic crisis right now. Savers are entitled to more and should move their cash to better Isa providers.’
The ‘dirty dozen’ Isa deals
|The ‘dirty dozen’ Isa deals|
|Bank/Building Society||Interest rate April 2009||Interest rate fall since April 2008|
|Yorkshire BS e-Isa||1.90%||3.65%|
|NS&I Direct Isa||1.30%||4.00%|
|Halifax Isa Saver Direct||0.50%||4.75%|
|Nationwide BS Instant Access Isa||0.25%||4.80%|
|Natest Cash Isa||0.60%||4.25%|
|Lloyds Cash Isa||1.00%||3.85%|
|Britannia BS Instant Access Isa||0.80%||4.00%|
|HSBC Cash Isa||0.20%||4.55%|
|Royal Bank of Scotland Cash Isa||0.80%||3.90%|
|Northern Rock Cash Isa||0.87%||3.67%|
|Barclays Cash Isa||0.10%||4.16%|