Cheshire Building Society has announced that it is launching a new Fixed Rate Mini Cash ISA for investors looking to take advantage of this year's tax-free savings allowance, before the end of the tax year on April 5, 2008.
The 12 month individual savings account (ISA) offers a rate of 6% gross/AER which will be paid on maturity.
The Cheshire’s Fixed Rate Mini Cash ISA has a guaranteed rate of interest for full 12 months. Savers can invest a minimum of GBP1,000 up to a maximum amount of GBP3,000 if the account is opened on or before April 5, 2008 and up to a maximum amount of GBP3,600 if opened on or after April 6, 2008, to reflect the new government ISA allowances for 2008/09 tax year. No further additions or withdrawals are permitted within the 12 month period.
The society said that another key advantage of Fixed Rate Mini Cash ISA is its flexibility for investors who are looking to transfer previous years’ ISA subscriptions into a new account. By transferring funds to a more competitive rate before the end of the tax year, investors can maximize their previous year’s investment and increase the savings they can generate during the 2008/09 tax year in one move.