Britannia has launched a new one-year fixed-rate mini cash Individual Savings Account (ISA) that offers the security associated with a fixed-rate bond for savers who get organised prior to April 5th.
This is the end of the tax year and the deadline by which any investments need to be made to qualify for tax benefits.
Set at five per cent, Britannia marketing manager Phil Stubbins explained that, as with a fixed-rate bond, savers could be sure "that the rate won't drop".
The account will mature on April 7th 2007, but it is possible to invest next year's allowance of £3,000 prior to this date, leading to a maximum £6,000 of tax-free savings.
However, a lump sum of £3,000, equivalent to the entire annual allowance, is required in order to open the account.
Meanwhile, Abbey has launched an ISA accruing interest at 4.6 per cent, with immediate access to funds guaranteed by a cash card. The minimum balance for this account is just £1.
And Alliance & Leicester has added 0.7 per cent to its Direct ISA Issue 2 interest rate until April 30th 2007, making the current rate 5.2 per cent.
The competitive rate follows research showing that as many as a fifth of people still don’t know what a mini cash ISA is. To read more about ISAs, click here.
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