A new online direct savings account has been launched by first direct.
The new online ISA offers a savings interest rate set at one per cent above the Bank of England base rate.
The bank also announced a number of other changes to its savings accounts, with new savings interest rates offered from today.
Most savings interest rates were cut by 0.25 per cent, reflecting the Bank of England's quarter per cent base rate cut.
However, first direct cut its popular online savings account by 0.20 per cent, now offering a savings interest rate of five per cent.
The bank already cut its standard variable mortgage rate, also by a quarter per cent, and now stands at 5.50 per cent.
The launch of this new online ISA will help retain first direct's place in the best buy tables for both tax-efficient savings and deposit accounts, believes first direct chief executive Richard Kimber.
"This year we have shown that first direct is more than the UK's most recommended bank – we are also a serious player in the savings market," he commented.
The new online ISA is guaranteed to pay 5.50 per cent AER until February 15th 2006, when it will revert to the normal cash ISA savings interest rate.
first direct launches online savings account, cuts savings interest rates
first direct launches online savings account, cuts savings interest rates
Mon, 15 Aug 2005
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