Best new money deals - February 17th

For a fixed-rate ISA…

  • TSB has increased the rate on its two-year fixed rate ISA, which now pays 1.80 per cent upon its anniversary. Savers must invest from £3,000. Further additions are permitted and early access is allowed subject to 180 days' loss of interest. Transfers in from other ISAs are also welcomed. This deal is for savers aged 16 and over and can be operated in branch, by telephone and online.
  • Verdict: Savers who have yet to utilise this year's tax-free allowance will be delighted by this latest increase from TSB. Priced at 1.80 per cent, this deal is highly competitive and heads straight into the Best Buys. This is likely to be a great choice for savers looking to invest over the shorter term with a high-street brand.

For easy-access savings…

  • Shawbrook Bank has updated its easy-access account, which now pays 1.30 per cent upon its anniversary or 1.29 per cent monthly. Savers can invest from £1,000 up to a maximum of £75,000. Additions and unlimited penalty-free withdrawals are permitted. This deal is for savers aged 18 and over and must be operated online.
  • Verdict: The 1.30 per cent easy-access account from Shawbrook Bank is highly competitive, sitting within the top 10 of its sector, and entering the Best Buys as a result. This deal is likely to be a great choice for anyone looking to kick-start a savings habit.

For an all-round credit card…

  • Lloyds Bank has increased the introductory 0 per cent interest balance transfer term on its Choice Rewards Amex/MasterCard credit card. This deal now has a 30-month interest-free term for balance transfers with an introductory fee of 3.00 per cent. This card also has a 12-month interest-free term for purchases. A card fee of £24 a year is payable; however, Lloyds current account customers will receive a £12 refund. Customers will also be able to earn rewards on their spending, which can be redeemed as cashback, shopping vouchers, Avios or gifts.
  • Verdict: Credit-card holders looking for an all-round credit card will be delighted by the Lloyds card. Not only does it offer great introductory interest-free deals for both balance transfers and introductory purchases, but card holders can also earn rewards on their everyday spending. As always, customers should aim to pay off any debt before the introductory deals end so that they do not incur any interest.

For a fixed-rate mortgage…

  • Furness Building Society has launched a new four-year fixed rate mortgage, priced at 2.84 per cent. This deal is for all customers who borrow between £20,000 and £500,000 at 80 per cent loan-to-value. A fee of £999 is payable, all of which can be added to the advance of the mortgage. An incentive package for remortgage customers of free valuation (max £335) is available while remortgage customers in England and Wales can also receive either free legal fees or £150 rebate and customers in Scotland will receive a £150 rebate. This deal allows borrowers to make overpayments of up to a maximum of 10 per cent of the mortgage advance. Furness’s lending area includes Scotland.
  • Verdict: The 2.84 per cent four-year fixed-rate from Furness Building Society sits well within a small sector of the market. Borrowers with the required 20 per cent deposit will also be able to enjoy a great incentive package, making this product an ideal choice for anyone looking to keep their initial costs down.

Thanks to Charlotte Nelson at Moneyfacts.

  • There are more money-saving tips in every issue of Yours magazine, out every fortnight on a Tuesday.