A new online ISA has been announced by the AA, offering a 3.5 per cent AER return which includes an introductory bonus of three per cent for the first year.
The Access ISA allows unlimited deposits and withdrawals up to this year’s maximum tax year allowance of £5,340.
To start up the internet-only account a minimum deposit of £2,500 is required, but once opened withdrawals can be made below the minimum without closing the account.
Transfers in from other cash ISAs are not allowed.
According to research by the AA, only four in 10 savers are currently taking advantage of tax-free ISAs.
Mark Huggins, director of AA Savings, said: “Although the majority of [people] surveyed are aware of the tax-free status of ISAs, fewer than half are taking advantage of them.
“Everyone able to save should take maximum possible advantage of their tax-free cash ISA allowance whether they want instant access to their funds or intend to leave it untouched.”
Free ISA guide: Click here