Newcastle Building Society unveils MaximISA

Tuesday, 15 September 2009 12:00

Newcastle Building Society has created a flexible tax-free savings plan to help the over-50s make the most of their increased ISA allowances.

The MaximISA scheme allows savers to spread their savings across more than one ISA, which means they are not tied to one single product in the tax year.

According to the building society, this is particularly useful for people whose ISA allowance for this year is tied up in a closed issue product.

And it means older investors will not miss out on their allowance - which will increase from £3,600 to £5,100 in October - before the tax year ends.

Steve Urwin, senior sales and marketing executive for Newcastle, said the MaximISA would benefit those cash ISA savers whose providers did not have systems in place to account for the increase in allowances for over-50s.

He added: "By giving savers a choice of how they make the most of their cash ISA allowance, Newcastle is encouraging savers to consider all options available and to understand that one ISA product does not necessarily have to be the only way of making the most of tax-free savings."

Among Newcastle's range of ISAs, which can be used as part of the MaximISA scheme, is a fixed-rate product offering 2.95 per cent interest for a year.

There is also a Reward ISA which pays two per cent interest plus a one per cent bonus for 12 months in the range.

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