Isa battle builds with Skipton offer

The war among banks and building societies to grab your cash Isa money continued to hot up this week with the launch of several accounts – including one paying 5%. Arguably the biggest announcement came from Nationwide which has upped the rates on its fixed-rate Isa range. Customers can also get 3.1% courtesy of its e-ISA – up from 2.9%. This includes a fixed introductory interest bonus of 1.35% until 31 July 2012. The account has to be opened online, and the increased rate is payable on all accounts opened since 1 February. Last week, Santander launched its Flexible Isa Issue 3 paying 3.15% – guaranteed not to fall below that for 12 months, though, as we reported, there are some service issues at the bank. The Halifax's Direct Reward Isa pays 3%, or 3.2% if you also bank with it. Back to this week, and Nationwide is also offering a one-year fixed-rate Isa paying 3.1% on balances up to £49,999, and 3.2% on amounts higher than that. However, the highest rate at the time of writing was Skipton building society's five-year fixed-rate Isa at an impressive 5%. The account matures on 4 April 2016, and the minimum balance is £500. It accepts "transfers in". Partial withdrawals and transfers out are not permitted.