Leeds Building Society has announced the launch of a new savings product.
The new three-year fixed rate individual savings account (Isa) and Toisa (an Isa funded from the proceeds of a Tessa) pays 5.20 per cent.
Specifically designed to provide an excellent tax-free return at a fixed rate for a set period, the Isa also features flexibility of access to a portion of the funds in the event of an emergency, without notice or penalty.
Isa holders paying the maximum allocation of £3,000 a year since the launch will have a capital balance of £24,000, plus any interest earned over this period, while Toisa balances including interest could reach £13,000.
Leeds' head of marketing and PR, Karen Wint, said: "This account offers a competitive guaranteed rate of return over three years and access to 50 per cent of the funds, without notice or penalty, at any time. The minimum investment is also only £1, making it available to all investors."
Chancellor Gordon Brown announced in his pre-Budget report this week that the Isa regime will remain in place until 2020, with the annual overall tax-free investment limit remaining at £7,000 for the present.For more information a cash Isa, click here.
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