Chelsea cash Isa
Type: Fixed-rate cash Isa.
Description: Chelsea Building Society has launched a one-year fixed-rate cash Isa paying 3.2 per cent. The minimum deposit is £10, and interest will be paid annually.
Early closure or transfer out to another Isa provider is permitted subject to 90 days’ loss of interest on the closing balance. Early closure would mean loss of tax-free status other than transfers to another provider.
Chelsea said the Isa offers a competitive rate in addition to tax-free returns and hopes it will prompt more savers to take advantage of the new tax year’s Isa allowance of £5640.
Conditions: Withdrawals are not permitted during the term. The Isa is available either in branch, by telephone or online.
Ian Hudson, principal of Wiltshire-based Hudson Green & Associates, said: “I think a rate of 3.2 per cent is good. It’s a market-leading rate.
“If a client came to me for advice, I’d say go for it. With a base rate of half a percent you’ll find that there aren’t any decent rates for Isas. This is one of the best around. I’m not suggesting putting all your eggs in one basket, but this is an attractive Isa.”