Savings: Teachers Building Society increases interest rate on ISA account | Personal Finance | Finance
Teachers Building Society (TBS) has confirmed it is increasing the savings interest rate of its new cash ISA. This applies to the triple access cash ISA account, which now pays three percent tax-free pa/ AER.
Despite TBS being a financial institution founded to help teachers, this savings account is for people of all professions.
Savers are being encouraged to take advantage of this hiked savings interest rate before the end of the tax year.
Those who choose to take out the triple access cash ISA only have a couple of weeks to use up their ISA allowance.
Currently, the ISA allowance is £20,000 a year and the deadline to use it April 5, 2023 before it gets renewed for the next tax year.
READ MORE: Inheritance tax expert says now is a good time to use up allowance
It should be noted that this is a savings account which has limited access for those who take it out.
The building society only offers three penalty-free withdrawals per calendar year for customers.
The interest rate is decreased to 0.50 percent for the remainder of the calendar year when more than three withdrawals are made.
TBS’s triple access cash ISA has a minimum operation balance of £100 and maximum balance of £250,000.
People can apply to open a savings account by visiting the Teachers Building Society’s website.
David Leek, the commercial director at Teachers Building Society, broke down why savers should take advantage of this product.
He explained: “Our triple access ISA provides a tax-free, competitive interest rate for savers looking for a secure home for their money before the end of the current tax-year.
“This ISA comes with the flexibility to access savings up to three times per calendar year without penalty.
READ MORE: Recession fears continue despite UK economy growing
“This is an attractive option for savers who aren’t planning to regularly access their savings but would like the comfort of knowing they can if they need to.”
As well as this, the building society is also offering a favourable deal through its one-year fixed rate cash ISA.
This pays an interest rate of 3.75 percent tax free/AER which is fixed only until February 14, 2024.
Anyone interested can apply via TBS’ website and the account has a minimum balance of £1,000 but a maximum balance of £250,000.
No withdrawals from the account are permitted and early closure of the account is subject to a 90-day penalty interest charge.
Interest rates have risen multiple times over the last 12 months in response to an action from the Bank of England.
Specifically, the Bank of England has hiked the base rate ten times in the last month to rein in inflation.
As a result, high street banks and building societies have passed on this rate hike to their customers.
Further intervention from the central bank is expected which could cause interest rates to go up even further.