News

30/03/2012 17:15:08

Time window narrows as providers close ISA deals

The time window in which to take advantage of this year's ISA allowance is narrowing all the time, as providers are reportedly closing down their deals in advance of the April 5th deadline. 

Michael Ossei, personal finance expert at uSwitch.com, described providers as "moving the goalposts" in the final week before the financial year ends and the tax free allowance disappears. 

"The clock is already ticking," he said.

"News … that providers are moving the goalposts and closing some deals up to a week early will be a real wake-up call to not leave things until the last minute."

He also warned that consumers seeking higher savings rates may find that these include large 12-month bonuses, which mask a very low rate underneath.

Therefore it is vital to move on after the year is up in order to make the best return possible.

MoneySupermarket.com reported that the average rate for fixed-rate ISAs is currently 0.47 per cent higher than the easy access cash equivalent at 3.77 per cent.