Halifax launches new Best Rate cash IsaDirect Reward cash Isa pays 2.8% AER

22 September 2010


Halifax has launched a new Best Rate cash Isa deal, offering customers a rate of at least 2.8% AER on their tax-free savings.

Available to both new and existing customers, the Direct Reward Isa will offer all savers a variable interest rate of 2.8% on their cash – but those who hold their main bank account with Halifax will get an additional 0.2% AER, raising the interest rate on the Isa to a market-leading 3%.

Best Rate cash Isas

This new account joins the Principality Building Society E-Isa at the top of the Which? Best Rate cash Isa table.

Both the Halifax and Principality accounts demand initial deposits of just £1 from savers and allow customers to transfer in Isa savings from previous tax years. However, unlike Principality’s deal, Halifax’s Direct Reward Isa offers customers in-branch and telephone access to their accounts.

Which? savings expert Jo Langenhan commented: ‘This new account is a welcome addition to the Which? Best Rate table – it offers customers a good deal, particularly those who already bank with Halifax.

‘However, don’t let the promise of an extra 0.2% in interest convince you to switch your current account to Halifax if you don’t already bank with them. It was one of the worst performers in our recent People’s Choice poll.’

To compare Best Rate cash Isas, including fixed rate cash Isas, visit the Which? cash Isas review. Meanwhile, for the lowdown on how Isas work, including details of how much you can save into a tax-free account each year, read the Which? advice guide.

pound coins

Which? Money when you need it

You can follow @WhichMoney on Twitter to keep up-to-date with our Best Rates and Recommended Provider product and service reviews.

Sign up for the latest money news, best rates and recommended providers in your newsletter every Friday.

Or for money-saving tips, and news of how what's going on in the world of finance affects you, join Melanie Dowding and James Daley for the Which? Money weekly money podcast

For daily consumer news, subscribe to the Which? news RSS feed here. And to find out how we work for you on money issues, visit our personal finance campaigns pages.