Tessa savers could be facing a hit in potential interest earnings if they don't move quickly to re-invest maturing Tessa funds, warns Yorkshire Building Society.
Savers whose Tessas mature have six months to re-invest them in a Tessa Only ISA (Toisa) to maintain their tax-free status. Yorkshire BS points out those Tessa that matured in February, March or April 2004 need to move now to re-invest.
YBS is offering savers a special rate of 5.35% throughout August on its roll-over Toisa. A saver with the maximum £9,000 invested in a Tessa could earn £2,679 over five years, whereas the same amount invested in a taxable saving account would net just £2,098 or £1,540 for a higher rate tax payer.
Lambeth Building Society is currently offering 5.4% gross on its Postal Tessa only ISA and Portman BS' 30 day notice Tessa only ISA is paying 5.3%. Halifax's fixed rate ISA saver, which is a five year bond is currently paying 5.8% gross, according to Moneyfacts.IFAonline
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