Santander and Alliance & Leicester launch new cash ISA

Wednesday, 24 February 2010 12:00

Santander and Alliance & Leicester have unveiled a new variable rate cash ISA which pays a minimum guaranteed rate of 3.5 per cent AER for a year.

The Flexible ISA pays at least three per cent above the Bank of England base rate for the first 12 months before reverting to a minimum rate of 3.5 per cent.

Consumers also benefit from penalty-free instant access on withdrawals.

Reza Attar-Zadeh, director of savings and investments, said that saving money via an ISA makes economic sense.

"Cash ISAs continue to play a vital role for taxpaying savers. We urge savers to look at the benefits of saving tax free by making the most of their ISA allowance, as unused allowances are lost forever," he added.

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