Alliance & Leicester has is to launch new versions of its popular Online Saver and Direct ISA products in July.
As a result, the existing accounts were closed to customers yesterday.
Existing customers can continue to fund their Direct ISA account up to the relevant limit, as well as to benefit from the market leading interest rate of 5.40 per cent.
The new account, Direct ISA Issue Two, will no longer carry the £25 fee payable for transferring an ISA from Alliance & Leicester to another provider.
As of yesterday, the interest rate on the Online Saver account fell from 5.35 per cent to 5.00 per cent, guaranteed to remain at least 0.25 per cent above the Bank of England base rate until at least December 31st 2005.
Customers will be written to individually to receive details of the changes to their account under Online Saver Issue Two.
"These accounts have proved to be extremely popular. I am pleased to confirm that we will be maintaining some of the most competitive rates in the market for existing customers," said Stephen Leonard, director of mortgages, savings and investment products at Alliance & Leicester.
"In addition these customers can continue to increase balances in these accounts up to the limits, with the knowledge that we are further guaranteeing to maintain these attractive rates, relative to the base rate, until the end of this year."Click here to find out more about banking.
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