Cambridge BS unveils 6% ISA reserve
Tuesday, 21 February 2012 08:47
Eagle eyed ISA savers may have noticed that April 6, the first day of the new tax year, falls on the start of the Easter bank holiday weekend, preventing them from depositing funds until April 10.
But the Cambridge Building Society has launched a six per cent ISA reserve to house savings in the interim, ensuring that customers receive the maximum interest possible.
The feeder account, although not an ISA, allows people to set aside their 2012-13 £5,640 ISA allowance from today, February 21, 2012, at a rate of six per cent gross p.a. / AER until April 6, when the funds will transfer to a choice of six ISA products.
According to the mutual, the automatic transfer from the reserve account into an ISA will mean that the four day bank holiday will not affect savers and four days of interest will not be lost.
Andy Lucas, commercial director at The Cambridge, said: “With the first day of the new tax year falling on a Bank Holiday, this is a time when most people may not be around to transfer funds into their ISA or they may wish to do so but their bank or building society will be closed.
“The ISA reserve account takes the pressure off the customer.”
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