NatWest/RBS and Marks & Spencer have both launched competitive cash ISAs this week.
Recent research from Internet bank Smile found the average household plans to increase their savings by 35% to around £2,600 in 2009.
Unfortunately, savings rates have been in freefall in recent weeks, so the arrival of two competitive ISAs is certainly timely.
The NatWest/RBS ISA
This is probably the best of the two, offering a rate of up to 3.51%, or an impressive 2.51% above base.
If you want to qualify for the top rate you’ll have to transfer a balance of at least £10,000, but the good news is that savers under that threshold still get a decent rate of 3.25%.
For those who are new to ISAs, there is a Cash ISA Plus offering which pays 3.51% and allows you to make withdrawals.
Existing NatWest customers who own an Advantage Gold or Private account can pocket themselves an additional 0.5% bonus if they apply before 20 April 2009, taking their rate to around 4%.
M&S Advantage Cash ISA
The M&S offering comes with a rate of 3.10% AER, including a 1% bonus until 21st April 2010.
With some analysts predicting that the base rate could fall to 0% by the summer, some savers may be looking to secure a fixed rate deal.
If so, M&S Money has one, two and three year deals, but unfortunately the rate is lower at 2.75%.
