With the deadline for investment in an individual savings account (Isa) looming, savings provider Britannia Building Society is introducing a new savings account for tax-free savings.
The society has launched a one-year fixed-rate Isa that offers a savings interest rate of five per cent annual equivalent rate (AER).
A minimum investment of a single lump sum of £3,000 is required to open the savings account.
Transfers from Isas held with other savings providers are allowed.
The fixed savings interest rate offered by the Isa makes it similar to a fixed-rate savings bond, according to the savings provider's marketing manager Phil Stubbins.
He says savers therefore have "peace of mind" that the savings interest rate would not be lowered.
"At the same time, it provides all the benefits of tax-free savings in a mini cash Isa," Mr Stubbins adds.
Potential investors in this type of savings account have until April 5th to invest in this tax year, but the marketing manager points out that they have the opportunity "to invest next year's Isa allowance into the account".
He says this effectively gives the saver £6,000 in tax-free benefits.
The new Britannia savings account matures on April 5th 2007.
Britannia launches tax-free savings account
Britannia launches tax-free savings account
Fri, 10 Mar 2006
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