As the country wakes up to a grey, drizzly morning, news from Moneyfacts paint a gloomy picture for savers. According to the financial analysts, low interest rates and changes to savings taxation are resulting in ‘perhaps the worst Isa season on record’.
In the run-up to the end of the tax year, banks and building societies tend to improve their rates in an attempt to attract savers to the tax-free products. But Moneyfacts says that the best easy-access Isa rate is 1.41 per cent, compared to the top rate of 3.15 per cent available five years ago.
As for savings in general, there are fears that George Osborne’s overhaul of the savings tax regime will cause mass chaos when new rules are introduced next month. The Chancellor is introducing the personal savings allowance (PSA). This will enable basic rate taxpayers to earn up to £1,000 of income from savings tax-free.
Comments
Join the debate for just $5 for 3 months
Be part of the conversation with other Spectator readers by getting your first three months for $5.
UNLOCK ACCESS Just $5 for 3 monthsAlready a subscriber? Log in