- TSB launches new 18-month Fixed Rate ISA offering 1.6% interest and reintroduces 3-year Fixed Rate ISA offering 1.85% interest.
- Nearly 1 in 6 people have an ISA account and almost half believe saving into an ISA account is the best option for them to save.
- Almost 70% of people know how to switch their ISA account but only half of respondents shop around for the best rate each year.
TSB has today boosted it’s ISA offering by offering two more competitive ISA products; for the first time TSB is offering an 18-month Fixed Rate ISA with 1.60% interest. In addition, TSB has brought back a 3-year fixed rate ISA offering 1.85% interest.
The two products are available to new and existing customers. The account can be opened in branch and online and allows customers to use their £20,000 annual ISA allowance as well as allowing transfers in from other ISA providers.
These two new products follows research from TSB which reveals that 58% of respondents have an ISA account and over six out of ten save into an ISA because interest rates are rising or because they believe saving into an ISA account is the best option for them. In addition, three of four respondents want to save more in 2019 than 20181.
However, for the last 10 years, interest rates have been at an all-time low over two thirds of respondents believe the Government should be doing more to help savers save.
Despite wanting the Government to do more for savers and with seven out of ten respondents knowing how to switch their ISA account just over half of the respondents seldom shop around for new rates each financial year.
Why it’s important to shop around for the best ISA rate:
- All savings in an ISA are tax free!
- Savers can currently invest up to £20,000 each year.
- The most convenient way to save for any savings goal.
- This year has seen an increase in more competitive rates to help more savers save.
- Switching your ISA provider is simple and easy – just contact your bank.
Paul Izon, Head of Savings at TSB says:
“It’s clear that ISA’s are making a comeback particularly as so many believe an ISA is the best option for them. It’s also encouraging to see that lots of people want to save more this year than last year.
“Our new and improved rates are some of the best in the market and are a great way for customers to save and get a healthy return on their savings for whatever they have planned in the future. At TSB, we believe every customer should consider having an ISA account, so that they are making the most of their tax-free allowances”.
Interestingly, TSB’s research highlighted that men are more proactive about savings than woman with 59% of men have an ISA account whilst one in three men have a savings goal for this year in comparison to 24% of women.
When it comes to ISA products, half of respondents prefer saving into a Cash ISA rather than a Stock and Shares ISA.
Generally, nearly one in four respondents said they would consider opening an ISA account this year if they didn’t have one already.
TSB’s full ISA portfolio can be found below:
|18-month Fixed rate ISA
|2-year Fixed rate ISA
|3-year Fixed rate ISA
|Junior Cash ISA