Best cash ISAs 2017: The Building Society offering top rates before deadline
It means savers would be better off opting for a three-year fixed rate with Principality than opting for the next best five-year fixed rate, which pays 1.75 per cent, from Paragon Bank.
Furthermore, Principality’s 18-month fix is equal to the top-paying 1.4 per cent four-year fixed rate from Coventry Building Society, and also pays more than the best two-year fixed rates of 1.25 per cent offered by Yorkshire Building Society and Chelsea Building Society.
Any of Principality’s top-paying ISAs can be opened online, by post or in branches, and with an initial lump sum of at least 500.
For savers, looking to fix for just a year, Yorkshire and Chelsea Building Society offer the highest one-year fixed rates of 1.1 per cent.
And the best easy-access accounts pay 1.05 per cent and are offered by either Coventry Building Society or Paragon Bank.
Both the instant-access ISAs can be opened with just 1 and online, but Coventry also gives the option to manage accounts over the phone, by post and in branch.
Should you use your ISA for cash or stocks & shares in 2017?
Driver warning: Four out of 10 motorists losing hundreds of pounds
Overall, the returns available this ISA season are the worst in more than five years, according to Moneyfacts.co.uk.
And no accounts will beat inflation, which hit 2.3 per cent in February, meaning money earning returns lower than this is in effect losing value.
People searching for better returns, albeit with higher risks, can consider using their ISA limit to shelter stocks and investments from tax.
The Lifetime ISA is set to launch in the new tax year, which offers a new way for savers to pull together money for a first home or retirement.
Rachel Springall, finance expert at Moneyfacts.co.uk, said: The ISA allowance is there to use it or lose it, so it s important to go over any old accounts to see whether they need to be transferred to something better, especially as some ISAs pay little to nothing in interest, going as low as 0.01 per cent.
“Today, most ISAs pay less than one per cent and there are no ISAs – in contrast, a year ago 85 per cent of the ISA market paid one per cent or more.”
The deadline for the 2016/2017 ISA is midnight at April 5.