moneysupermarket.com - new ISA product launches

Commenting on the ISA product launches this week by Santander and Halifax, Kevin Mountford, head of banking at moneysupermarket.com said: "ISA season is now officially in full swing, with a flurry of new ISA launches being announced this week by a number of banks and building societies. It is only when the big banks start to announce their new product offerings that we understand how competitive the market will be for savers. Both Santander and Halifax have shown their hand early and launched market leading products, although both best buy's deals are aimed at existing customers, something we are beginning to see more and more in the market.

"Whilst it's great there is an array of product options for consumers to choose from, it looks as though existing customers are being rewarded with beneficial offers, creating a two-tier system based on profitability.  Therefore consumers need to be smart and shop around and make sure they are getting the best overall value from their bank rather than be tempted by attractive headline rates. Despite the restrictions on the top deals, there is no doubt other banks will respond with competitive offers over the next few weeks.

"If you have not utilised your tax free allowance of £5,100 in this tax year yet, then you need to do so before April 5. If you are a taxpayer it is a no brainer to use your tax free allowance otherwise you are throwing money away. Our analysis show that savers who have taken full advantage of their full cash ISA allowance each year since ISAs were launched in 1999 would be over £3,300 richer than if they had invested an equivalent sum in an easy access savings account. If you have existing ISA funds sat in a low rate account, which the majority of savers do, it is well worth transferring to a better deal, and new ISA switching rules which were introduced at the start of the year make this easier to do."