Launches give an early start to the ISA season

There have been 32 product launches or rate increases on the tax-free savings accounts since the beginning of the year, including changes from major providers such as Santander, the new name for Abbey, and Birmingham Midshires.

Financial information group Moneyfacts.co.uk said providers did not typically start improving their ISA rates until mid-February, when investment in the accounts increases as people rush to use up their annual allowance ahead of the start of the new tax year.

The current round of rate increases comes despite the fact that the majority of changes being made on other types of savings accounts, such as instant access accounts and fixed-rate bonds, are reduc-tions.

But the group found that providers were still keen to encourage savers to lock up their money for a set period of time, with the number of fixed-rate ISAs on offer more than doubling during the past year from 39 to 84.

Michelle Slade, spokeswoman for Moneyfacts.co.uk, said: "As the new ISA season gets under way, savers will be hoping that this year will be as competitive as ever, bringing with it increasing rates."