Teachers Building Society launches market-leading notice cash ISA with 5% interest | Personal Finance | Finance newsbhunt


Teachers Building Society (TBS) has launched a new 180-day notice cash ISA account paying a market-leading five percent interest rate.

The account offers unlimited withdrawals subject to 180 days’ notice and pays the highest rate the society has on offer on a cash ISA.

David Leek, commercial director at Teachers Building Society, commented: “Our variable rate notice cash ISAs offer market-leading rates whilst giving savers the ability to access their funds if they need to.

“Rewarding savers has always been a priority for us, and we’re delighted to be offering rates of up to five percent.

“By trusting us with their money savers are supporting our mission to help teacher first-time buyers with smaller deposits take their first steps on the housing ladder.”

Mr Leek added: “We welcome saving applications both from within the teaching community and from those outside it who want the feel-good factor of knowing that as well as earning a great rate their funds are supporting a strong social purpose, not just lining shareholders’ pockets.”

Founded in the 1960s to help teachers get their first foot on the housing ladder, the mutual offers saving accounts to borrowers of all professions to support funding low-deposit mortgages to teachers so they can buy a first home.

By choosing to save with the Teachers Building Society, account holders are said to be “directly helping” teachers buy homes, something it thinks is a reason for savers to “feel proud”.

At the same time, the society is increasing the Annual Equivalent Rate (AER) on its popular 120-day notice cash ISA account to 4.75 percent. Existing as well as new account holders will benefit from the increase.

Both the 120 and 180-day notice cash ISAs offer unlimited withdrawals subject to the respective notice periods, meaning savers who want the flexibility to access their accounts.

Savers can open the accounts with a minimum deposit of £1,000 and up to £250,000 can be invested overall.

Other providers offering competitive interest rates on 180-day notice cash ISAs include Loughborough Building Society, which is also offering an AER of five percent, followed by Marsden Building Society with an AER of 4.45 percent.

For 120-day notice ISAs, the Teachers Building Society is topping the board with its 4.75 percent rate, also followed by Loughborough BS at 4.75 percent, then Chorley Building Society at 4.3 percent.

Commenting on the market, Alice Haine, personal finance analyst at Bestinvest, said: “Thankfully, the gap between the top savings rates and CPI inflation is narrowing which means people’s savings are being eroded far less quickly.”

However, she noted: “Not all savings accounts are equal so don’t assume your lender has applied the best rate they can to your existing savings account. High street lenders in particular have come under fire in recent months for failing to pass on interest rate rises to their customers.

“Thanks to a crackdown from the Financial Conduct Authority, banks and building societies must now apply interest rate rises more rapidly to customer accounts. Making major lenders more accountable for their poor performance is a positive move but savers would be wise to continue shopping around for the best deals on the market to find the most competitive rate.

“Particularly as the best savings rates are often found at smaller, challenger banks and newer online operators.”


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