Worst Cash ISA in the UK?
With the Bank of England cutting the base rate in August UK banks have been quick to reduce interest rates on saving accounts. Cash ISA accounts where you enjoy any interest earned tax free have not been immune to these cuts. Recent research from the Telegraph has highlighted that some cash ISA accounts are now paying next to nothing in interest to their customers.
Surprisingly NatWest come out on top with the meanest cash ISA rate in the UK paying a miserly 0.01% interest for savers with less than £24,999 deposited.
To put that in context if you were putting your 2016/17 ISA allowance of £15,240 into this account, in 10 years time your ISA would be worth £15,255.25 – that’s a whopping £15.25 in 10 years!!
Taking into account inflation which is current running at 0.6% at the time of writing, then your money is going backwards in real terms.
Shopping around for the best cash ISA deal is crucial to make sure you are staying ahead. With any savings account it can pay dividends to assess the rate you are getting at least annually to ensure you are getting a competitive deal. Click here for latest cash isa deals.