Cheshire BS launches fixed rate ISA at 3.5%

A new 18-month fixed rate cash ISA has been introduced by the Cheshire Building Society.

The Direct Fixed Rate ISA Issue 1 pays 3.5 per cent tax free on balances of more than £1,000.

It can be opened online or by phone and is open to new subscriptions only, the society – part of the Nationwide group – said.

The minimum amount required to start up the account is £1,000 and the maximum balance is based on the current ISA allowance of £5,340.

Interest is paid on maturity and while savers cannot withdraw cash during the fixed term, they can close the account with 180 days’ loss of interest.

Matthew Wyles, Nationwide’s group distribution director, said: “There isn’t much time left for consumers to make use of their full ISA allowance.”

For savers who don’t want to lock away their money for 18 months, the mutual’s easy access option, the Cheshire Direct Cash ISA, was launched last week.