Spotlight On: Halifax's 2.8% easy access ISA

The deal

Halifax is offering 2.8 per cent on its easy access cash ISA, plus a bonus 0.2 per cent to existing current account holders.

Good points

You won't find a better rate at the moment on an instant access ISA, and all returns are tax-free, meaning you'd need to find a standard account paying 3.5 per cent gross to beat it. The bonus for customers is a good way of rewarding loyalty.

Bad points

The rate slumps to a pathetic 0.5 per cent after 12 months. It means anyone opening an ISA with the Halifax now needs to make sure they close it next September or they'll get almost no interest.

Conclusion

This is yet another example of a reputable company being a bit shabby by offering an intial high rate that turns into a pathetic deal. If you're organised enough to switch accounts after 12 months then it's a good deal. If you want to find a decent long-term home for your savings, then forget about this account.