Alliance & Leicester launches new cash ISA

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.
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