The change, effective from today, applies to both new customers and those who have already opened the product.
The WeBSaveR Limited Access ISA also accepts transfers of previous years’ ISA subscriptions providing the maximum account balance does not exceed £250,000.
Available via the West Brom website and operated online, WeBSaveR Limited Access ISA requires a minimum initial investment of £1,000. Interest of 1.55% tax free gross p.a. / AER variable is paid annually and can either be credited to the account or paid away.
Three withdrawals can be made per account year without notice or charge. Further withdrawals are permitted but will result in the account earning a lower rate of interest, currently 0.75% tax free gross p.a. / AER variable, for the remainder of that year.
David Taylor, the West Brom’s Head of Products, said:
“We’re pleased to be improving the rate we can offer savers who are keen to utilise their new tax free savings allowance right at the start of the tax year.
“Our Limited Access ISA combines the convenience of online account management with a market leading rate of interest which isn’t confused by the use of a temporary bonus.”
Kevin Mountford, head of banking at MoneySuperMarket, said:
“We are beginning to see ISA rates increasing, and new products entering the market as we start the new tax year. It really could be a case of the early bird catches the worm and it might pay for savers to take advantage of the rates on offer now.
“The increase in rate from The West Brom coupled with Nationwide Building Society launching a regular saver ISA offering a 2.0% rate which allows up to £1,270 per month to enter the account, are positive pieces of news for savers.
“With recent MoneySuperMarket research showing British savers currently set aside £12 billion per month, having that money held in the best paying account can make all the difference. In addition, there is little chance of an increase in the Bank of England base rate on the horizon. So by taking on one of these ISA deals they stand to get the tax benefit from day one.
“There has been a trend for people selecting their ISA account at the last minute as the tax year ends, maybe in the hope there would be a scramble from the banks and building societies to tempt them to be customers. However, the battle for funds hasn’t played out so late in the tax year in recent times and it looks like the start of the tax year is when the race for customers is on, and snapping up the best deals before they’re gone is a good move by savvy savers.
“Until the new tax rules on savings interest are introduced in April 2016, people should look to maximise the benefits of their tax free ISA allowance, which is now £15,240 for the current tax year as the tax benefits make your savings go even further.”
