Andy Pandy wrote:
"Norman Wells" wrote in
message ...

I wonder about that. If you take cash ISAs as an example of tax free
savings, all that's happened is that the banks and building societies
offer those at rates lower than any corresponding non-ISA account.

Do they? I've got a regular saver ISA paying 7% with FD, they weren't
offering a regular saver non-ISA paying 11.74% or even 8.75%.

If you take Halifax just as an example, their current cash ISA fixed rates
for 2, 3 and 4 years are 3.5, 3.75 and 4.25%. The corresponding rates for
2, 3 and 4 year fixed rate term bonds not in an ISA are 4.0, 4.25 and 4.5%.
OK, you'll get back slightly more from the ISAs than you would from the term
bonds after basic rate tax, but why are the gross rates consistently lower
on the ISAs? It can only be that the bank is taking or 'sharing' what the
government intended should really be yours. That's unfair, disreputable and
underhand in my view.

And I don't think it's limited just to Halifax.