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.
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