Spotlight On: Principality's 2012-13 ISAs

The deals

The Welsh building society yesterday launched its range of ISAs for the new tax year.

Good points

There's a range of fixed rate, variable and regular saver cash ISAs, all offering decent rates. Regular saver pays 4 per cent while five-year fix pays 3.75 per cent.

Bad points

If you want a flexible option, your choice is limited to the Promise ISA which pays just 2.6 per cent. Even worse, it includes an introductory bonus of 0.8 per cent, leaving it as an account paying a paltry 1.8 per cent, which is one to be avoided. Withdrawals are not permitted on the rest of the range.

Conclusion

Investing into a ISA at the beginning of the tax year makes perfect sense – you'll end up with 12 months' more tax-free interest. But you should ensure you find an account which doesn't have a tricky introductory bonus or forces you to lock your money away for years.