Abbey & Bradford & Bingley launch 3.5% ISA

Monday, 07 September 2009 12:00

Abbey and Bradford & Bingley have launched a two-year ISA which pays 3.5 per cent interest to savers with as little as £1 to deposit.

The fixed-rate tax-free savings plan, which is run by post, allows customers to transfer in existing cash ISAs to the account.

However, no withdrawals are permitted on the account until the ISA matures on October 1st, 2011.

Reza Attar-Zadeh, director of savings and investments at Abbey, said: "Our new two-year fixed-rate ISA is ideal for savers who are looking to secure a competitive fixed-rate for their tax-free savings in today's low base rate environment."

Abbey and Bradford & Bingley said they would be re-opening the account on October 6 so customers aged 50 or above could advantage of new increased ISA limits for the age group.

The cash ISA limit for the Over-50s is being increased from £3,600 to £5,100 on this date.

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