Alliance & Leicester has unveiled its new cash ISA.
The Direct ISA is a mini cash ISA, which allows consumers to save money tax-free at an interest rate of 5.4 per cent gross.
Funds in the account can be easily accessed via phone or the internet.
"With the end of the 2004/05 tax year looming, people need to move quickly to take advantage of their tax-free savings allowance, by opening an ISA," said Alliance & Leicester's Nathan Barber-Kebby.
As with all cash ISAs, customers are able to invest up to £3,000, which will not be taxed during the course of that tax year.
Alliance & Leicester will allow transfers of existing ISA balances to the new Direct ISA, which is available from today. To find more cash ISA deals, click here.
© DeHavilland Information Services plc