Best new money deals - May 4th

For a fuss-free savings account…

  • AA has reviewed its easy access ISA, which now pays 1.30 per cent yearly (including a 1.05 per cent bonus for 12 months). Savers can invest from £100. Additions and unlimited penalty-free withdrawals are permitted, as are transfers in from cash and stocks & shares ISAs. This deal is for savers aged 16 and over and must be operated online.
  • Verdict: Savers looking to kick-start their ISA savings will be intrigued by this latest update from AA. Paying 1.30 per cent, this easy-access ISA sits comfortably among the top 10 of its sector and is likely to be a great choice for savers looking for a fuss-free account.

If you're looking to save over the longer term… 

  • Principality Building Society has revamped selected fixed-rate ISAs, including its five-year fixed-rate deal, which now pays 1.75 per cent upon its anniversary or 1.74 per cent monthly. Savers must invest from £500. Additions are permitted while the issue remains open and early access to funds is allowed subject to closure and a penalty of 360 days' loss of interest. This deal is for savers aged 16 and over and can be operated in branch, by post and online.
  • Verdict: The 1.75 per cent five-year fixed-rate ISA from Principality is highly competitive and enters the Best Buys, making this a popular choice for savers looking to invest over the longer term. However, a high-interest penalty for early-access means savers must ensure you have alternative funds for emergencies.

If you're looking to remortgage…

  • Tesco Bank has reduced the rate on its five-year fixed rate mortgage, which is now priced at 2.53 per cent to June 30, 2021. This deal is for all applicants who borrow from £40,000 at 80 per cent loan-to-value. A fee of £995 is payable, of which £800 can be added to the advance of the mortgage. An incentive package for remortgage customers of free valuation and free legal fees is available, while Tesco Clubcard holders will receive one Clubcard point for every £4 made in mortgage repayments. This deal has the flexibility to make overpayments of up to 20 per cent of the outstanding balance and take payment holidays. Tesco Bank's lending area includes Scotland.
  • Verdict: This mortgage from Tesco Bank is highly competitive, sitting comfortably as market-leader in its sector and entering the Best Buys as a result. Alongside this great rate remortgage customers will also receive a decent incentive package, which will help minimise upfront costs. In addition, Clubcard holders will receive the added benefit of extra points to spend in store.

If you're looking to pay off credit card debt cheaply… 

  • Lloyds Bank has increased its introductory interest-free term for balance transfers on its balance transfer credit card. This deal now offers a 39-month interest-free term for balance transfers with an introductory balance transfer fee of 2.95 per cent. Standard purchases will be charged at 18.9 per cent APR. To be eligible for this deal, customers must be 18 or over and apply online.
  • Verdict: Borrowers looking to consolidate their credit card debts for a significant amount of time will be delighted by this latest update from Lloyds Bank. With a 39-month interest-free term for balance transfers, this deal improves its position in the Best Buys. As always, customers should aim to pay off the debt before the deal ends so that they do not incur any interest.

If you're looking for a cost-effective loan… 

  • Sainsbury's Bank has reduced the rate on selected tiers of its unsecured personal loan. Customers can now apply for a competitive loan of £10,000 to £15,000 over five years with a rate of 3.3 per cent APR. Applicants must be at least 18 and over, a Nectar cardholder and have a minimum household income of £7,500 per annum. Applications can be made online and by telephone.
  • Verdict: Sainsbury's Bank earns an 'outstanding' Moneyfacts personal-loan rating following a reduction to its £10,000 to £15,000 tier. This deal is highly competitive, making it an ideal choice for anyone looking for a cost-effective loan over the longer term.

Thanks to Charlotte Nelson at Moneyfacts.

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