If you’re looking to use up your ISA allowance for this year – and want to transfer previous years’ savings in the process – we’ve compiled a roundup of the top one-year fixed rate ISAs that accept transfers in and, crucially in the current climate, can be opened online.

Taking the top spot among restriction-free accounts is Al Rayan Bank, with its 12-month Fixed Term Deposit Cash ISA paying a market-leading expected profit rate of 0.65% AER (paid quarterly) from a minimum investment of £1,000. Further additions are permitted, as are transfers in of both cash and stocks & shares ISAs, provided any additional funds are invested within 30 days of account opening.

There are several accounts that pay the next-best rate of 0.60% AER, including Shawbrook Bank’s 1 Year Fixed Rate Cash ISA Bond Issue 41 that pays interest on a monthly basis or on its anniversary, and Furness Building Society’s Fixed Rate eSavings Cash ISA (Issue 14), a purely internet-operated account that pays interest on maturity.

Then there’s Paragon Bank’s 1 Year Fixed Rate Cash ISA that pays 0.60% AER on its anniversary or monthly, from a minimum initial investment of £500. Further additions are permitted within 15 days of the initial deposit, transfers in are welcome and earlier access is also allowed, albeit on the loss of 90 days’ interest. Finally, Aldermore’s 1 Year Fixed Rate Cash ISA pays the same rate of 0.60% AER on maturity from a minimum deposit of £1,000, with further additions welcome for another 14 days. Transfers in are allowed, provided ISA transfer forms are received within 10 working days, and earlier access is permitted on 90 days’ loss of interest.

You can find more internet-operated ISAs that accept transfers in by heading to our chart.

Top products – At a glance

Should I consolidate my debt into a secured loan?

With the current economic uncertainty, borrowers with a high amount of outstanding personal debt will likely be looking for ways to reduce their repayments and make the debt more manageable. For many, consolidating that debt into a loan provides an easy and efficient way of doing so. Although a personal loan is often the most common way for borrowers to reduce debt, for those with a significant amount outstanding, a secured loan might be an option.

Is consolidating debt with a secured loan a good option?

This will depend on the individual’s personal circumstances. Usually, a secured loan is an option available to those looking to borrow a significant amount of money, typically £20,000 or more. It can be approved within a few weeks, making it a relatively quick way to consolidate debts. However, borrowers should be aware that a secured loan has greater risks than unsecured loans, largely because it requires the borrower to put up an asset, usually their home, as security. This means if they fall behind on repayments or are unable to repay the loan, they could end up losing their home.

The main benefit of using a secured loan to consolidate debt is that it can reduce the monthly repayments, but it won’t be for everyone. Those struggling with debt, or who want additional advice, should consider speaking to Citizen’s Advice or a free debt charity.

How much could you save?

This will depend on many factors, such as the amount of debt to consolidate, the amount being borrowed and the interest charged on the loan, which will depend on factors such as the borrower’s credit score. 

Here’s an example to give an idea of how much can be saved consolidating debt through a secured loan. Let’s say a borrower took out a secured loan of £55,000. This would be used to consolidate £53,901.68 worth of debts held on a credit card and five loans, with the remainder of the money being used to make home improvements.

If the debts remained as they were, they would incur interest costs of £22,352.42 and monthly repayments of £1,945.80. In contrast, the secured loan of £55,000 had a repayment term of 10 years at a rate of 3.40% (5.43% APRC), which reduced the total interest cost to £15,973 and cut the monthly repayments from £1,945.80 to £591.44. In this case, the potential savings are clear, but there are other options, such as consolidating to a personal loan or remortgaging. It’s important to find the option that’s right for you.

There’s a lot more to this story online, or find out if secured loans could be an option by speaking to our broker partner.

Product Spotlight: 0% credit cards with rewards

If you’re looking to use a 0% purchase credit card that can give you something back from all that Christmas shopping, why not go for one that offers rewards? Here’s a roundup of the top deals available.

First up is Santander’s All in One Credit Card Mastercard that boasts a market-leading 0% purchase term of 26 months (together with a low standard APR of 21.7%), as well as 0.5% cashback on all purchases. However, there’s a £3 monthly fee to pay, so it’s worth deciding if the cashback that can be accrued will make it worthwhile. Tesco Bank’s Clubcard Plus Credit Card Mastercard is another fee-charging card (£7.99 a month), but with a 0% purchase term of 24 months (standard rep APR of 37.7%) and valuable Clubcard rewards, it could be worthwhile for regular Tesco shoppers.

Those looking for a card without a monthly fee will have to opt for a slightly shorter interest-free term, but the rewards could be worth it. Sainsbury’s Bank’s Dual Offer Credit Card Mastercard, for example, has a 20-month 0% term on both purchases and balance transfers (rep APR 21.9%), together with a generous Nectar points programme for Sainsbury’s shoppers. Or, M&S Bank’s Shopping Plus Mastercard could be ideal for loyal Marks & Spencer’s customers, with an 18-month interest-free term (19.9% rep APR) and a reward scheme that allows shoppers to earn one point for every £1 spent at Marks & Spencer, as well as one point for every £5 spent elsewhere (100 points = £1 reward voucher).

You can find more 0% credit card deals on our chart.

The best equity release rates available right now

Equity release rates have been falling for the past few years, making the deals far more competitive. Although speaking to an equity release broker can help borrowers choose the right product for their individual circumstances, here we highlight the lowest rates available on equity release plans that allow drawdown.

The best drawdown rates with a fee

The lowest equity release rate on a plan that offers drawdown and charges a fee is 2.7% AER, which is being offered by two plans from Legal & General Home Finance: its Flexible Orange and Optional Payment Orange plans, both of which are available on properties valued at a minimum of £100,000. A minimum advance of £10,000 is required and both plans charge a fee of £599. Interest is not payable on Flexible Orange but partial repayments of up to 10% are permitted without an early repayment charge; conversely, interest is payable on Optional Payment Orange, but partial repayments are not allowed.

Pure Retirement also offers a rate of 2.7% AER on its Classic Lite Plus 2 plan, which is available on properties valued at a minimum of £125,000. Borrowers must take a minimum advance of £10,000. A product fee of £500 is charged and interest is not payable on this plan, and penalty-free partial repayments of up to 10% are permitted.

The best equity release drawdown rates without a fee

The lowest lifetime mortgage rate being offered on an equity release plan charging no fee and offering drawdown comes from LV=, which offers a rate of 2.54% AER on its Lifetime Mortgage Drawdown+ Standard 2 plan at a maximum LTV of 30%. A slightly higher LTV (32%) is available at a rate of 2.57%. Both plans are available on properties valued at a minimum of £100,000 and borrowers must take a minimum advance of £10,000. Interest is not payable on either plan, but penalty-free partial repayments of up to 10% are allowed.

More 2 Life offers a rate of 2.66% AER on its Capital Choice Superlite Drawdown 3 plan and a rate of 2.67% AER on its Capital Choice Superlite Drawdown 4 plan. Both plans are available for properties valued from a minimum of £100,000 and borrowers must take a £10,000 minimum advance. Interest is not payable, but partial repayments of up to 10% are allowed without penalty.

There are many more options available, but ultimately, as equity release has a long-term impact on finances and the inheritance the borrower leaves behind, those considering equity release should think about speaking to an independent financial adviser before taking out a plan to ensure it is the right option for their financial circumstances.

There’s a lot more to this story online, or find out if equity release could be for you by speaking to a broker.

Note: The plans we’ve highlighted are not endorsed by Moneyfacts.co.uk, but have instead been chosen because they offer the lowest rates on the market as at 26 November 2020.

Your pet is part of the family, and knowing their medical bills are covered can give you valuable peace of mind that you’re doing the best you can for them. The Insurance Emporium was named as Pet Insurance Provider of the Year at the Moneyfacts Consumer Awards 2020, so could be well worth considering – it offers pet insurance for dogs and cats with a choice of cover to suit you and your pet, with a discount of up to 30% for the first year and cover for vets fees of up to £8,000. Not only that, but 95% of claims were paid in 2019. To find out more, get in touch for a quote.

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