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’90s savers see £60,000 boost to ISA pots

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Savers who think the ISA allowance is 'too small and not worth it' will be shocked to find out exactly how much regular investing can add to their savings pots.

According to, if a saver had put away the maximum into a cash ISA since they were first introduced in April 1999, and each year the rate of interest earned was equivalent to the Bank of England Base Rate, your ISA pot could have swelled to around £60,000.

If the same saver had also invested into TESSAs before 1999, that would have added an extra £13,000 – bringing the total savings pots from these tax wrappers of approximately £73,000.

Following these calculations, savers are being urged to put money aside into these tax free savings vehicles as small amounts will still benefit from compound interest.

Anna Bowes, director of, said: “Although we believe it’s going to be an underwhelming ISA season this year, we still think it’s important for savers to consider using their cash ISA allowance, especially given the announcement that the Bank of England expects inflation to remain above the 2% target for two years. Keeping money in a tax efficient environment is even more vital.”

Bowes highlights that despite no non ISA accounts beat or match inflation, there is a small increase in the number of cash ISAs.

Last month there were only three but this month sees seven cash ISAs paying 2.70% or more, tax free.

Over the last week, high street names including Nationwide group and Halifax have been jostling for the top spot on some fixed rate ISAs, and Bowes says this may be the start of some competition coming back into the market.


 A/C Name  

Minimum    Gross Rate     AER     Bonus                  Notes    
Coventry BS   60 Days’ Notice ISA (3)  £1  2.80%  2.80%  0.60% for 12 months  60 Day notice or loss of interest on withdrawals, no transfers allowed
Earl Shilton BS  90 Days’ Notice Cash ISA  £10  2.70%  2.70%  n/a  Rate is due to fall to 2.25% from 1/5/13. Only available to locals.
Nationwide BS   4 Year Fixed Rate ISA  £1  2.70%  2.70%  n/a  Access on closure only
Cheshire BS  4 Year Fixed Rate ISA  £1  2.70%  2.70%  n/a  Access on closure only
Derbyshire BS  4 Year Fixed Rate ISA


 2.70%  2.70%  n/a  Access on closure only
Dunfermline BS  4 Year Fixed Rate ISA  £1  2.70%  2.70%  n/a  Access on closure only
Halifax  5 Year Fixed Rate ISA  £500  2.70%  2.70%  n/a  Access on closure only



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