Principality one-year fixed Isa will pay 4%
Principality Building Society has launched a range of Isas for the new tax year.
The mutual, the largest building society in Wales, is offering a one-year, fixed, regular saver Isa that pays 4 per cent interest from a minimum opening and monthly deposit of £20, and a maximum of £470.
Principality said the Isa was “market leading”, with a monthly investment of £470 earning £122.20 interest at maturity. No withdrawals are permitted for the one-year term. Interest is calculated daily and paid on maturity.
A one-year fixed-rate cash Isa pays 3 per cent interest with a minimum deposit of £500, while an 18-month fixed-rate cash Isa pays 3.25 per cent. Closure is permitted subject to 90 days of lost interest on the one-year Isa, and 180 days of lost interest on the 18-month Isa.
The society’s Promise Isa has a variable rate and allows transfers in, paying 2.6 per cent, inclusive of a 0.8 per cent bonus for the first year. Customers can make unlimited withdrawals in the first year. After 12 months customers who make no more than two withdrawals in a tax year will be rewarded with a fixed, conditional bonus of 0.5 per cent, payable on the core rate of 1.8 per cent.
An e-Isa is also available, offering 3.1 per cent interest, inclusive of an introductory bonus of 1.3 per cent for the first 12 months.
Kate Murray, savings manager fpr Principality, said: “We have an attractive range of Isas on offer, headlined by our Regular Saver Isa which is designed to help those savers that do not have the lump-sum of £5640 to invest upfront. Isas are a great way of protecting your interest from the taxman but we understand that not everyone can afford to invest the lump-sum of £5640 upfront.
“In this environment we would encourage savers to review their current Isas for the new tax year to ensure they are making the most of their existing Isa savings, as well as their new 2012/2013 allowance. Almost all of our Isa range allows transfers in allowing savers to maximise their total Isa savings.”
Jaskarn Pawar, director of Northamptonshire-based Investor Profile, said: “The rate on the fixed, regular saver Isa looks attractive at 4 per cent but you have to invest every month to achieve that rate. I think for banks and building societies it’s an increasing practice to hook consumers with the rate, but these rates aren’t always as achievable as they think.
“As for the other products, the 3 per cent is not bad, but if you cant get your money out it’s not great. I’m sure I’ve seen a better deal from Santander at 3.3 per cent. My advice to clients is to shop around and, if they take an attractive introductory offer, set a reminder when the 12 months is up.”