Avoid the Big Four for your cash ISA

Not one of Britain's Big Four High street banks has made it into the top 50 cash individual savings accounts (ISAs) this tax year.

Not one of Britain's Big Four High street banks has made it into the top 50 cash individual savings accounts (ISAs) this tax year.

Cash ISAs are hugely popular because they enable savers to shelter up to £3,000 of bank or building society deposits from tax each year. But figures published today by independent savings market monitor Moneyfacts show the accounts on offer at Barclays, HSBC, Lloyds TSB and Royal Bank of Scotland-owned NatWest have delivered poor value since the start of the 2004-05 tax year.

The best five accounts over the past year, from West Bromwich, Leeds & Holbeck and Portman building societies, as well as Abbey and Marks & Spencer Money, have all paid more than £150 interest.

By contrast, Lloyds TSB's cash ISA, the best account from a Big Four bank, paid £142 and came 54th in the survey. The remaining big banks all performed significantly worse, with Barclays and its subsidiary Woolwich, for example, both paying just £30 in interest. Although the figures sound relatively small, Moneyfacts' survey assumed savers only held £3,000 in each ISA. In practice, many savers have been investing £3,000 a year since the accounts became available in 1999, so the total interest they earn is much more noteworthy.

Rachel Thrussell, Moneyfacts' head of savings, said mutually owned building societies have been much more likely to deliver good interest rates than stock market-listed banks over the past year. "Mutuals take 14 of the top 20 places with the two-year, fixed-rate ISA from West Bromwich Building Society leading the way with a return of £161," she said.

Abbey offered the best variable-rate account, paying £155 in interest. The worst accounts, from Northern Rock and Co-operative Bank, paid just £107 and £114 respectively. The survey also showed accounts with a CAT kitemark, are not necessarily the best payers. Just five of the 20 most-rewarding accounts carry the kitemark.

Independent Partners; Do you need financial advice on your investments, pension or insurance? Book a free consultation with an independent Financial Adviser at VouchedFor.co.uk

Life and Style
healthMeet the volunteer users helping to see if the banned drug can help cure depression and addiction
Arts and Entertainment
tvDick Clement and Ian La Frenais are back for the first time in a decade
Life and Style
tech
News
i100
News
Foo Fighters lead man Dave Grohl talks about the band's forthcoming HBO documentary series
people
News
i100
Finacial products from our partners
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

ES Rentals

    iJobs Job Widget
    iJobs Money & Business

    Guru Careers: Pricing Analyst

    £30 - 35k: Guru Careers: We are seeking a Pricing Analyst to join a leading e-...

    SThree: Trainee Recruitment Consultant

    £20000 - £25000 per annum + OTE £45K YR1: SThree: At SThree, we like to be dif...

    SThree: Trainee Recruitment Consultant

    £20000 - £25000 per annum + competitive: SThree: Did you know? SThree is a mul...

    Guru Careers: C# Project Team Lead

    £55 - 65k (DOE): Guru Careers: A unique opportunity for a permanent C# Develop...

    Day In a Page

    Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination

    Health fears over school cancer jab

    Shock new Freedom of Information figures show how thousands of girls have suffered serious symptoms after routine HPV injection
    Fifa President Sepp Blatter warns his opponents: 'I forgive everyone, but I don't forget'

    'I forgive everyone, but I don't forget'

    Fifa president Sepp Blatter issues defiant warning to opponents
    Extreme summer temperatures will soon cause deaths of up to 1,700 more Britons a year, says government report

    Weather warning

    Extreme summer temperatures will soon cause deaths of up to 1,700 more Britons a year, says government report
    LSD: Speaking to volunteer users of the drug as trials get underway to see if it cures depression and addiction

    High hopes for LSD

    Meet the volunteer users helping to see if it cures depression and addiction
    Why the cost of parenting has become so expensive

    Why the cost of parenting has become so expensive

    Today's pre-school child costs £35,000, according to Aviva. And that's but the tip of an iceberg, says DJ Taylor
    Fifa corruption: The officials are caught in the web of US legal imperialism - where double standards don't get in the way

    Caught in the web of legal imperialism

    The Fifa officials ensnared by America's extraterritorial authority are only the latest examples of this fearsome power, says Rupert Cornwell
    Bruce Robinson: Creator of Withnail and I on his new book about Jack the Ripper

    'Jack the Ripper has accrued a heroic aura. But I'm going after the bastard'

    The deaths of London prostitutes are commonly pinned on a toff in a top hat. But Bruce Robinson, creator of Withnail and I, has a new theory about the killer's identity
    Fifa presidential election: What is the best way to see off Sepp Blatter and end this farce?

    Michael Calvin's Last Word

    What is the best way to see off Sepp Blatter and end this farce?
    Mediterranean migrant crisis: 'If Europe thinks bombing boats will stop smuggling, it will not. We will defend ourselves,' says Tripoli PM

    Exclusive interview with Tripoli PM Khalifa al-Ghweil

    'If Europe thinks bombing boats will stop smuggling, it will not. We will defend ourselves'
    Raymond Chandler's Los Angeles: How the author foretold the Californian water crisis

    Raymond Chandler's Los Angeles

    How the author foretold the Californian water crisis
    Chinese artist who posted funny image of President Xi Jinping facing five years in prison as authorities crackdown on dissent in the arts

    Art attack

    Chinese artist who posted funny image of President Xi Jinping facing five years in prison
    Marc Jacobs is putting Cher in the limelight as the face of his latest campaign

    Cher is the new face of Marc Jacobs

    Alexander Fury explains why designers are turning to august stars to front their lines
    Parents of six-year-old who beat leukaemia plan to climb Ben Nevis for cancer charity

    'I'm climbing Ben Nevis for my daughter'

    Karen Attwood's young daughter Yasmin beat cancer. Now her family is about to take on a new challenge - scaling Ben Nevis to help other children
    10 best wedding gift ideas

    It's that time of year again... 10 best wedding gift ideas

    Forget that fancy toaster, we've gone off-list to find memorable gifts that will last a lifetime
    Paul Scholes column: With the Premier League over for another year, here are my end of season awards

    Paul Scholes column

    With the Premier League over for another year, here are my end of season awards