Chelsea Building Society has a new fixed rate Cash ISA with an interest rate more than six times the current base rate.
This new cash ISA offers a competitive return of 3.30% AER and is fixed until 31 December 2012.
A minimum deposit of just £100 is required to open this savings account. The maximum of course is the ISA limit for this tax year, up to £5,340.
Product Manager Lynne Pepper said: “With the Bank of England base rate remaining at 0.5% for 31 consecutive months, savers are feeling the effects of the current financial crisis and are understandably frustrated. We hope the launch of this competitive new product will act as a boost to savers, encouraging them to invest. ”
MoneyHighStreet comments: “Giving savers access to more competitive savings accounts is welcomed. Of course savers need to select the most appropriate accounts to suit their particular needs. This fixed rate cash ISA for example may want to be considered alongside other ISA offerings, including a base rate tracker account (for example from Lloyds TSB) or an inflation linked ISA (for example from Birmingham Midshires).
“Equally, if you’ve already used your ISA allowance for this tax year another ISA savings account is not for you and you’ll need to find an alternative type of account – perhaps an easy access account, regular saver or fixed rate account.
“Whatever you opt for, make sure you keep an eye on the interest being paid and ensure you continue to get the best deal, moving your money if need be.”
The new Chelsea Cash ISA is available in branch and via the telephone and online.
There is a monthly interest option of 3.25% (3.30% AER) for those who rely on their savings for income but this is not available with the online version.
Chelsea Building Society is a trading name of Yorkshire Building Society with which it merged in 2010.