Furness Launches Two New Fixed Cash Rate ISAs That ‘Top the List’ at 1.85% | Personal finance | Finance
The UK savings provider has two new fixed rate ISAs and two new fixed rate bonds. According to data available via Moneyfacts, all four accounts offer some of the highest rates currently found on the high street.
The minimum investment for bonds is also £1,000, with a cap of £250,000 for individual accounts and £500,000 for joint accounts.
Neil Alcock, head of savings strategy, said he hoped the new rates would alleviate some of the current financial pressures.
“As a mutual organization, we always have our customers’ best interests at heart, and now more than ever, people need our support.
“The recent rise in inflation and the latest increase in the base rate have raised understandable concerns and, as Rishi Sunak confirmed in this week’s Spring Statement, the outlook for the economy remains uncertain.”
He continued: “We hope that by highlighting some of the benefits of the base rate increase through our savings accounts, we will help alleviate some of the pressure caused by the rising cost of living. for our customers.
“The range of competitive fixed rate savings accounts now available will help households save more in 2022 and beyond.”
Meanwhile, experts say UK banks are failing to pass on higher interest rates to their customers, causing them to lose “billions of pounds” in interest.
Laura Suter, AJ Bell’s head of personal finance, said: “While banks are very quick to pass on any base rate increases to their mortgage customers, savers have to wait longer and many won’t see any increases.”
She continued: “A lot of people’s savings are just sitting in their checking account or old savings account, earning 0.01%.
“And those people probably won’t see an increase in the interest rate paid to them, but the banks will pocket the difference to boost their profits.”
Financial journalist Martin Lewis recently posed the “use, lose, or give up altogether” question when it comes to ISAs.
He concluded, “Most should ditch cash ISAs for accounts that pay more.”