ISAs 'offer good value for money'

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ISAs 'offer good value for money'

Fri 24th Apr 2009

Research released recently by Moneyfacts.co.uk has revealed that cash ISAs still offer good value for money when compared to other types of savings account.

The financial facts website calculated that the average rate of interest on a cash ISA in the UK currently stands at 1.94 per cent, compared to 0.65 per cent for the average no-notice savings account.

Moneyfacts.co.uk added that the best buy cash ISA currently on the market is the one offered by Manchester Building Society, which currently offers a rate of 3.56 per cent.

Michelle Slade, analyst for the website, said: "Despite a string of rate cuts in the last six months, cash ISAs still provide the best value for money […].The forthcoming increase in ISA allowance to £5,100 will be a much welcomed boost for disillusioned savers."

Earlier this week, Alistair Darling announced that the tax-free savings allowance for cash and stocks and shares ISAs would be increased from a total of £7,200 to a total of £10,200.

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