The worst ISA season EVER: More misery for savers as pitiful rates offered
SAVERS are facing the worst ISA season on record in yet another blow for retirees and investors desperately trying to generate a risk-free income.
Savers continue to suffer poor rates
Rates on tax-free saving products have hit the lowest level ever as providers slash returns – some as low as 0.1 PER CENT.
The run-up to the end of the tax year usually sees a flurry of providers offering tempting deals to savers looking to max out their tax-free savings allowance before it refreshes on April 5.
But this year hot competition has been nearly non-existent.
The average easy-access ISA rate has now sunk to just 1.04 per cent after steadily falling over the past five years, according to Moneyfacts.co.uk.
Getting a risk-free return has become even tougher
Some ISAs pay appalling low rates of just 0.10 per cent, the website found.
The typical rate across all ISAs, including fixes, stands at 1.20 per cent, down from 2.39 per cent in 2011.
The number of the accounts on offer during this time have fallen from 286 to 211.
Former pensions minister warns about new lifetime Isa
Rachel Springall, finance expert at Moneyfacts.co.uk, said: "It’s safe to say that ISA season has failed to make an appearance this year, with a combination of rock-bottom interest rates and a fall in the number of ISAs available meaning that many savers will lack the incentive to grab a new deal."
It comes after the Government's saving provider yesterday announced it was slashing Premium Bond prizes and cutting rates amid the miserable market conditions.