British Banks to Change Isa Terms

According to the latest information revealed by British banks and building societies, they are planning to launch new Isa terms in an effort to
attract deposits from a large number of savers who have not yet taken out accounts.
Starting next month (October, 6th to be precise), such banks as HSBC, Abbey and First Direct are increasing the Isa allowance to £10,200 up from £7,200; also, the saving cash amount will rise from £3,600 to £5,100. It is said that the new banks’ incentive is aimed at attracting as much savers’ cash as possible. It should be noted, however, that only those savers who have not yet taken out an Isa account will qualify for the change. Current Isa savers will face low savings rates in case they decide to top their Isa account with an extra £1,500.
On Monday, September 7th, Abbey introduced a new 2-year fixed Isa plan offered at 3.5%, which is 0.5% more than the group’s best April offer (available from Alliance & Leicester).
First Direct is expected to launch its enhanced Isa account this Wednesday (September 9th); the account will pay savers 3% till November 2010.
As for HSBC, it is said to launch its new Isa in the end of September (expectedly, on the 21st). The account will pay a fixed 3.25% and will only be available to bank’s Plus and Premier customers.
Let us remind that the best Isa offer that is currently available on the British market comes from the Leeds building society, but it requires that the saver fixes for 5 years, which is highly unadvisable.
British industry experts claim that the latest move of banks and building societies comes as an unpleasant surprise to those savers who believed they locked into best Isa offers available earlier in 2009.  The most disadvantaged are said to be those who fixed their money this summer right after savings rates, which were on its peak in April, fell.