Competition for Individual Savings Accounts as deadline looms

Competition for ISAs as deadline looms

With the end of the tax year approaching banks are trying to woo customers by offering increasingly competitive rates of interest, the Express reports.

As the April 5 deadline approaches, Barclays has fired the latest shot with the launch of its Golden Isa, paying 3.1 per cent. But it is still beaten by the new Flexi Isa recently introduced by Santander, paying 3.5 per cent.

Tax free savings accounts such as ISAs are a useful way to save as all the income you receive from these accounts is tax free. This can increase your income by a fifth (20%) if you are a basic rate tax payer.

In return for the Government allowing you to receive the income from your ISA tax free you must keep to some simple rules. The main ones are that: you are only allowed to contribute a maximum of £10,200 each tax year into the account of which only £5,100 may be in a Cash ISA.

Npower joins others in price reductions

Energy company Npower is to cut domestic gas bills by 7% from 26 March, following price cuts by other suppliers the BBC reports.

The company has become the fourth of the "big six" energy suppliers to announce a reduction in prices. Customers will see an average fall of £50 on their annual bill as a result of the change, the company has said.

Out of the "big six" suppliers, only EDF Energy and Scottish Power have yet to make any announcement about gas prices.