Traditionally ISA season starts to gather pace in mid February, but this year things appear to have started early.

Since the start of the year, new and/or revised products have been launched by, amongst others Alliance & Leicester, Birmingham Midshires, Chelsea BS, Leeds BS, The Post Office and Santander.

Providers still appear to want to tie savers’ money in, resulting in the number of fixed rate ISAs on offer more than doubling in the last year from 39 to 84.

However, providers do appear to be listening to savers’ demands for short term commitments, as 68% of all fixed rate ISAs available are for terms of two years or less.

Cash ISA Selections

Michelle Slade, spokesperson for Moneyfacts.co.uk commented:

“As the new ISA season gets underway, savers will be hoping that this year will be as competitive as ever, bringing with it increasing rates.

“Demand for savers’ money caused rates to rise during most of 2009, but with restrictions on how much can be invested, ISAs rates showed limited benefit.

“For the first time since their launch in 1999, the top variable ISA rate is lower than that on a standard variable savings account.

“However, the tide has turned and ISAs are seeing rates increase, while other savings rates are being cut.

“ISA savers will be further cheered as the increased cash ISA allowance of £5,100 is opened up to all savers from the start of the new tax year and not just the over 50s.

“The tax free element of ISAs is a real incentive to savers and is the reason they remain many savers’ first port of call.”

www.moneyfacts.co.uk - The Money Search Engine

Moneyfacts.co.uk is the UK's leading independent provider of personal finance information. For the last 20 years, Moneyfacts' information has been the key driver behind many personal finance decisions, from the Treasury to the high street.

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